2017 FORM CT-1040 File early to protect your refund from identity thieves. D RS epartment of evenue ervices Connecticut Resident Income Tax Return Instructions Important 2017 Connecticut Income Tax Topics: File Electronically File electronically ... it is secure, fast and free! Visit www.ct.gov/TSC to electronically file. See Taxpayer Service Center, on Page 53. Refund Options Direct Deposit Choose direct deposit for the fastest way to receive your Connecticut income tax refund. Direct deposit is not available for first time Connecticut filers. See Refund Options, Direct Deposit, on Page 4. Paper Check If you do not elect or qualify for direct deposit, your refund will be issued by paper check. Processing a paper check may increase the time it takes for you to receive your refund. Connecticut Earned Income Tax Credit Full-year residents may be eligible to claim the Connecticut earned income tax credit (CT EITC). See CT EITC on Page 6. Protecting Taxpayer Information and Refunds Security of taxpayer information and financial transactions is a top priority for DRS to better protect your personal information and assure that refunds are delivered to their rightful owners. See Protecting Taxpayer Security, on Page 16. This booklet contains information and instructions for the following forms and schedules: • Form CT-1040 • Schedule CT-EITC • Schedule CT-CHET • Tax Tables • Tax Calculation Schedule • Use Tax Information
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2017FORM CT-1040
File early to protect your refund from identity thieves.
DRSepartment of
evenueervices
ConnecticutResidentIncome TaxReturn Instructions
Important 2017 Connecticut Income Tax Topics:
File ElectronicallyFile electronically ... it is secure, fast and free! Visit www.ct.gov/TSC to electronically file.See Taxpayer Service Center, on Page 53.
Refund OptionsDirect DepositChoose direct deposit for the fastest way to receive your Connecticut income tax refund. Direct deposit is not available for first time Connecticut filers.See Refund Options, Direct Deposit, on Page 4.Paper CheckIf you do not elect or qualify for direct deposit, your refund will be issued by paper check. Processing a paper check may increase the time it takes for you to receive your refund.
Connecticut Earned Income Tax CreditFull-year residents may be eligible to claim the Connecticut earned income tax credit (CT EITC).See CT EITC on Page 6.
Protecting Taxpayer Information and RefundsSecurity of taxpayer information and financial transactions is a top priority for DRS to better protect your personal information and assure that refunds are delivered to their rightful owners.See Protecting Taxpayer Security, on Page 16.
This booklet contains information and instructions for the following forms and schedules:• Form CT-1040• Schedule CT-EITC• Schedule CT-CHET• Tax Tables• Tax Calculation
Schedule• Use Tax
Information
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What’s NewProperty Tax Credit LimitationFor taxable year 2017, in order to qualify for the property tax credit, you, or your spouse if married filing jointly, must be 65 years of age or older by the end of the taxable year, or you must have claimed at least one dependent on your federal income tax return. The maximum income tax credit for taxes paid to Connecticut municipalities remains at $200. The phase out thresholds for all filing statuses remain at the 2016 levels.
Earned Income Tax CreditThe earned income tax credit in effect for Connecticut residents for 2017 is 23 percent (23%) of the federal Earned Income Credit claimed and allowed on your federal income tax return.
Income Tax Exemption for Teacher PensionsEffective for taxable years beginning in January 1, 2017, and January 1, 2018, in determining a taxpayer’s Connecticut Adjusted Gross Income (AGI), a taxpayer is allowed a subtraction modification of 25% of the income received from the Connecticut teacher’s retirement system.This modification applies to the extent such income is properly included in the taxpayer’s federal AGI for the taxable year.
“Taxes are the way we all contribute to an even better Connecticut. Thank you for doing your part!”
Commissioner Kevin B. Sullivan
Penalty Waiver RequestsThere is a one year statute of limitations imposed on penalty waiver requests received on or after July 1, 2017. The Commissioner cannot consider a request received more than one year from the date a notice of such penalty was first sent to the taxpayer requesting the waiver. For the taxpayer who self reports the penalty on his or her tax return, the filing date of such return is considered the date on which the taxpayer was notified of such penalty. See Policy Statement 2017(6), Requests for Waiver of Civil Penalties.
Paid PreparersIf you are a paid tax preparer preparing any Connecticut personal income tax return(s), you are required to sign the return(s) and include your Preparer Tax Identification Number (PTIN) issued by the Internal Revenue Service. You are no longer allowed to use your Social Security Number. You must use your PTIN.If your PTIN is not used, a civil penalty of $500 may be imposed. See Special Notice 2017(8), New Requirements for Income Tax Preparers and Facilitators of Refund Anticipation Loans or Checks.
New Designated CharityThe Mental Health Community Investment Account, was added on Form CT-1040, Schedule 5, Contributions to Designated Charities. You may contribute all or a portion of your refund to this charity on Line 70h.
Timely Filed Returns – April 17, 2018The 2017 Connecticut income tax return (and payments) will be considered timely if filed on Tuesday, April 17, 2018.In 2018, the due date for filing a Connecticut income tax return (April 15) falls on a Sunday. The next business day is Monday, April 16, which is a legal holiday in the District of Columbia (Emancipation Day). Therefore, for filing purposes the next business day is Tuesday, April 17, 2018.
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Angel Investor Tax CreditThe Form CT-AIT, Angel Investor Tax Credit is now obsolete. You must use Schedule CT-IT Credit to calculate the amount of the Angel Investor Tax Credit you can claim on your return. If your are claiming the Angel Investor Tax Credit, you must complete Part III of the Schedule CT-IT Credit.
Crumbling Foundations Subtraction ModificationEffective for taxable years beginning on or after January 1, 2017, in determining a taxpayer’s Connecticut AGI, a taxpayer is allowed a subtraction modification for the following:• Amount of any financial assistance received by the
taxpayer from the Crumbling Foundations Assistance Fund;
• Amounts paid to or on behalf of the taxpayer, as the owner of a residential building, under the Collapsing Foundations Credit Enhancements Program; or
• Amount of financial assistance received from a municipality by the taxpayer, as the owner of a residential building, to repair concrete foundations that have deteriorated due to the presence of pyrrhotite.
This modification applies to the extent such income is properly included in the taxpayer’s federal AGI for the taxable year.
Organ Donation Expenses Subtraction ModificationEffective for taxable years beginning on or after January 1, 2017, in determining a taxpayer’s Connecticut AGI, a taxpayer is allowed a subtraction modification for certain costs incurred by a taxpayer during the taxable year in connection with the donation to another person of human bone marrow, or all or part of a human liver, pancreas, kidney, intestine or lung for purposes of organ transplantation. The costs include lost wages, medical expenses, travel expenses, and housing expenses, but the subtraction modification cannot exceed $10,000.
Filing and Paying ElectronicallyMost Connecticut taxpayers may use the DRS Taxpayer Service Center (TSC) to file their Connecticut income tax return at www.ct.gov/TSC.Electronically filing and paying your taxes is easy and accurate. It provides you with confirmation of receipt and reduces the possibility of errors.While some taxpayers may be reluctant to make electronic payments for security reasons, we want to assure you that our electronic funds transfer is safe and secure.
Single Sales Factor Apportionment and Market-Based SourcingFor taxable years beginning on or after January 1, 2017, a business, trade, profession, or occupation carried on in Connecticut and outside of Connecticut must apportion its income using a single factor gross income percentage. These multistate businesses are required to utilize market-based sourcing for purposes of determining their gross income percentage.Businesses must source receipts from the sales of services and intangible property on a market basis. Receipts from the rental, lease, or license of tangible personal property are sourced according to the location of the property. Receipts from the sale of tangible personal property continue to be sourced based upon the location of the purchaser. Businesses that cannot reasonably determine where their receipts should be sourced under the statutory rules may petition the Commissioner to use an alternate method that reasonably approximates such sourcing rules.Sales of intangible property and tangible personal property are excluded from the apportionment calculation (numerator and denominator) if such property is not held by the business primarily for sale to customers in the ordinary course of the company’s trade or business.Do not apply the apportionment fraction to income from the rental of real property or gains or losses from the sale of real property. The entire rental income from Connecticut real property or gain from the sale of the property is allocated to Connecticut and the entire amount of any loss from the sale is allocated to Connecticut. Rental income from real property located outside Connecticut or any gain or loss from the sale of this property is allocated out of state.If receipts from the sale of tangible personal property are excluded from the sales factor, the net gain (or loss) from such sale should be allocated to the state where the property is located and is not subject to apportionment.See Special Notice 2017(1), Legislative Changes Regarding Single-Sales Factor Apportionment and Market Based Sourcing.
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Internal Revenue Code Section 457A Deferred CompensationThe Tax Extenders and Alternative Minimum Tax Relief Act of 2008 enacted Internal Revenue Code Section 457A.In determining your Connecticut adjusted gross income, to the extent not properly included in gross income for federal income tax purposes, any compensation required to be recognized under 26 U.S.C. §457A that is attributable to services performed within Connecticut must be included as an addition modification on your Form CT-1040, Schedule 1, Line 37.Section 457A applies to deferred compensation paid to any service provider under a nonqualified deferred compensation plan that is attributable to services performed
after December 31, 2008. Deferred compensation earned before January 1, 2009 must be reported on or before taxable year 2017. This requirement includes management companies providing services to offshore hedge funds.Pursuant to Conn. Gen. Stat. §12-711(a), compensation from nonqualified deferred compensation plans attributable to services performed within Connecticut, including compensation required to be included in federal gross income under section 457A of the Internal Revenue Code, is subject to Connecticut income tax.Thus, if you are a service provider to whom section 457A applies, you must report such income as Connecticut sourced.Consult your tax advisor for detailed information on the application of section 457A of the Internal Revenue Code.
The fastest way to get your refund is to file your return electronically and elect direct deposit. Choosing direct deposit allows the money to go directly into your bank account; it eliminates the possibility of the refund being lost, stolen or returned as undeliverable; and it saves tax dollars by costing the government less. Make your direct deposit successful by:• Confirming your account number and routing number with your financial institution and entering them clearly on
your tax return; • Entering the direct deposit information separately for both your federal and state electronically filed returns; and• Printing your software-prepared paper return only after you have entered the direct deposit information into the
program.Some financial institutions do not allow a joint refund to be deposited into an individual account.In an effort to reduce fraud, direct deposit is not available to first-time Connecticut income tax filers.
REFUND OPTIONS
Direct Deposit
If you do not elect or qualify for direct deposit, a refund check will be issued and processing may be delayed.DRS recommends that taxpayers who are not first time Connecticut income tax filers choose direct deposit ... the most reliable and fastest way to receive your refund.
Paper Check
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Q & A About the Connecticut Individual Use Tax
1. What is use tax?Connecticut taxpayers owe use tax on purchases of taxable goods or services when Connecticut sales tax is not collected at the time of sale. Most often, this results from purchases made online or out-of-state. Together, sales and use taxes assure that taxable purchases of goods and services used in Connecticut are treated equally and fairly.
2. Who pays use tax?If Connecticut sales tax is not paid to the retailer at the time of purchase, Connecticut law requires that the purchaser pay use tax directly to the DRS.
3. On what kinds of goods or services must I pay use tax?
You must pay use tax on taxable goods whether purchased, leased or rented, and taxable services. Taxable goods include: furniture, jewelry, automobiles, appliances, cameras, computers, and computer software. Taxable services include: repair services to your television, motor vehic le, or computer ; landscaping services for your home; and reupholstering services for your household furniture.
4. Are there exemptions from the use tax?
Yes. Generally, any purchase or lease of goods or services exempted from Connecticut sales tax is also exempt from Connecticut use tax. Some examples are newspapers, magazines by subscription, Internet access services, and repair and maintenance services to vessels.
5. Do I owe Connecticut use tax on all my out-of-state purchases of goods that are taxable in Connecticut?
No. If all the goods purchased and brought into Connecticut at one time total $25 or less, you do not have to pay Connecticut use tax – but the $25 exemption does not apply to goods shipped or mailed to you.Generally, if you purchase taxable goods from mail order companies, over the Internet or at an out-of-state location and had those goods shipped to Connecticut or brought back into Connecticut for use in Connecticut and did not pay Connecticut sales tax, you must pay the Connecticut use tax.
6. What are the use tax rates?
Use tax rates are the same as sales tax rates. The general rate is 6.35% for purchases of taxable goods or services. The rate on computer and data processing services is 1%. However, the sales tax rate on certain items of tangible personal property is 7.75%. (See Schedule 4, Individual Use Tax, on Page 34.)
7. When must individuals pay use tax?
You must pay use tax no later than April 15 for purchases made during the preceding calendar year (January - December). Your use tax liability may be reported either on Form OP-186, Form CT-1040, Form CT-1040NR/PY, or Form CT-1040X. If you are not required to file a Connecticut income tax return, you must file and pay your use tax liability using Form OP-186 no later than April 15. You may file one Form OP-186 for the entire year or you may file several returns throughout the year. If you are
engaged in a trade or business, you must register with DRS for business use tax and report purchases made in connection with your trade or business on Form OS-114, Sales and Use Tax Return.
8. Are there penalties and interest for not paying the use tax?
Yes. The penalty is 10% of the tax due. Interest is charged at the rate of 1% per month from the due date of the tax return. There are also criminal sanctions for willful failure to file a tax return. When you sign an annual income tax return, you are legally declaring the truthfulness, completeness, and correctness of all information – including the section for use tax payment.
9. How does an individual calculate their use tax liability?
Calculate the use tax by multiplying the total cost of the taxable goods or services purchased, including separately stated charges such as shipping and handling, by the applicable sales tax rate (1%, 6.35%, or 7.75%).
10. What if I buy taxable goods or services in another state and the vendor charges sales tax for the other state?
If goods or services are purchased for use in Connecticut and the tax paid in the other state is less than the Connecticut tax, you must report and pay Connecticut use tax equal to the difference between the Connecticut tax and the tax paid to the other state.
When filing your return, don’t forget the Connecticut Earned Income Tax Credit.
• To qualify for the Connecticut Earned Income Tax Credit (CT EITC), you must be a full-year Connecticut resident. Part-year residents and nonresidents with Connecticut sourced income do not qualify for the CT EITC and must file Form CT-1040NR/PY.
• Qualified taxpayers claim the CT EITC by completing Schedule CT-EITC, Connecticut Earned Income Tax Credit (included in this book).
• Schedule CT-EITC must be attached to Form CT-1040 (or Form CT-1040X) or the claim for credit will not be reviewed.
• The CT EITC is equal to 23% of the amount of the federal earned income credit claimed and allowed.
See Schedule CT-EITC - Connecticut Earned Income Tax Credit, on Page 35.
Connecticut taxpayers may obtain help filing Schedule CT-EITC by visiting www.ct.gov/drs/eitc. See the back cover for more Connecticut tax information.
DRS EITC Website
11. What if I do not report and pay the use tax I owe?
You or your preparer must sign and declare that your income tax filing is “true, complete, and correct.” That includes calculating and reporting on Line 15 all purchases of goods or services, whether in Connecticut or from outside the state, on which Connecticut sales tax was due but not paid. Failure to report use tax due on Line 15 and include that amount in the total amount due on Line 30 may subject you to a penalty of up to $5,000, imprisonment for up to 5 years, or both. For more information on Connecticut Individual Use Tax, please review Informational Publication 2016(19), Q&A on the Connecticut Individual Use Tax.
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Below is a list of charities for which you may use your tax return to contribute all or a portion of your refund. Enter your total contributions on Form CT-1040, Connecticut Resident Income Tax Return, Schedule 5, Line 70. Your contribution is irrevocable.To contribute directly, send your contribution to the address shown below.
Contributions to Designated Charities
Assists research, education, and community service programs related to Acquired Immune Deficiency Syndrome (AIDS).
Aids Research Education Fund
Department of Public Health - HIV Prevention ProgramMS #11APVPO Box 340308Hartford CT 06134-0308
Treasurer, State of Connecticut/AIDS Fund
Assists research, education, and community service programs related to breast cancer.
Breast Cancer Research and Education Fund
Department of Public Health - Community Health and Prevention SectionMS #11 CCSPO Box 340308Hartford CT 06134-0308
Treasurer, State of Connecticut/Breast Cancer Fund
Helps preserve, protect, and manage Connecticut’s endangered plants and animals, wildlife and their habitats.
Endangered Species, Natural Area Preserves, and Watchable Wildlife Fund
Department of Energy & Environmental Protection Bureau of Administration Financial Management79 Elm StreetHartford CT 06106-1591
DEEP-Endangered Species/ Wildlife Fund
Makes grants to the immediate family members of service members domiciled in Connecticut for essential goods and services when military service creates family financial hardship.
Military Relief Fund Military Department, Military Relief FundFiscal Office360 Broad StHartford CT 06105-3795
Treasurer, State of Connecticut/Military Relief Fund
Assists Connecticut residents in paying for the unmet medical and ancillary needs of organ transplant candidates and recipients.
Organ Transplant Fund
Department of Social ServicesAccounts Receivable55 Farmington AveHartford CT 06105
Commissioner of Social Services/Organ Transplant Fund
Protects the children of families who are no longer eligible for public assistance benefits.
Funds mental health prevention, treatment and recovery services delivered by private not for profit agencies in local communities.
Safety Net Services Fund
Mental Health Community Investment Account
Department of Social ServicesAccounts Receivable55 Farmington AveHartford CT 06105
Department of Mental Health and Addiction Services,Fiscal DivisionMS#14FISPO Box 341431Hartford, CT 06134
Commissioner of Social Services/Safety Net Fund
Treasurer, State of Connecticut/Mental Health Community Investment Account
CHET Baby Scholars Fund
Provides contributions of up to $250 for CHET college savings accounts opened for children under age one or newly adopted.
Office of the State TreasurerCHET, 7th Floor55 Elm StreetHartford, CT 06106
Treasurer, State of Connecticut/CHET Baby Scholars
Make checks payable to:Mailing Address:Designated Charity:
Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
Connecticut Organ Donor (Y) Give the gift of hope by registering to become an organ and tissue donor. Information about organ donation and various organ donor programs is available from the following websites.
Donate Life Connecticut www.ctorganandtissuedonation.org/
Organ Donation www.organdonor.gov/
National Marrow Donor Program Be The Match Registry www.bethematch.org/
United Network for Organ Sharing (UNOS) www.unos.org/
LifeChoice Donor Services www.lifechoiceopo.org/
New England Organ Bank www.neob.org/
Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
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Tax AssistanceDRS is ready to help you get answers to your Connecticut tax questions. Visit the DRS website at www.ct.gov/DRS or call 800-382-9463 (Connecticut calls outside the Greater Hartford calling area only) or 860-297-5962 (from anywhere) during business hours, Monday through Friday, 8:30 a.m. to 4:30 p.m.For walk-in assistance, refer to the back cover for a list of DRS offices. If you visit, be sure to bring:• Copy 2 of your federal Forms W-2 and any other forms
showing Connecticut income tax withholding; • Your Social Security Number (SSN) card, photo
identification, and proof of qualifying property tax payments if you are claiming a property tax credit; and
• Your completed federal income tax return.
Forms and Publications Visit the DRS website at www.ct.gov/DRS to download and print Connecticut tax forms and publications anytime.
Connecticut Form 1099-GIf you itemize your deductions for federal income tax purposes and wish to obtain your Connecticut Form 1099-G information, you may do so by visiting www.ct.gov/DRS, select For Individuals and select Get Form 1099-G. DRS will not mail paper copies of the Connecticut Form 1099-G.
Common Errors to Avoid that May Delay Your RefundFollow these tips to avoid errors and to help us process your refund faster: Be sure you have received all your federal Forms W-2 and
1099 before filing your Connecticut income tax return. Generally, you receive the forms on or before January 31. If you receive an additional federal Form W-2 or 1099 after filing your Connecticut income tax return, you may be required to file Form CT-1040X, Amended Connecticut Income Tax Return for Individuals. See Amended Returns, on Page 37.
Most taxpayers qualify to electronically file their Connecticut income tax return. See Filing the Connecticut Income Tax Return Electronically, on Page 9.
You must use blue or black ink to complete your paper return.
Complete and send all four pages of your return. If you do not provide DRS with all the completed pages of your return or do not provide all required information, the processing of your return will be delayed.
Do not send Forms W-2, Forms 1099, or Schedules CT K-1 with your Connecticut income tax return. Complete Columns A, B, and C of Section 3 of your return. DRS will disallow your Connecticut withholding if you fail to complete all columns.
Enter your name, mailing address, your SSN or ITIN, and the name and SSN or ITIN for your spouse (if filing a joint return), and attach all required schedules or forms. If a SSN or ITIN is not provided for all taxpayers, DRS cannot process your tax return.
Check the correct filing status on your return. Round all figures to the nearest whole dollars. Sign your return. If you and your spouse are filing jointly,
both of you must sign. Have your paid preparer sign the return and enter their
tax preparer tax identification number (PTIN) issued by the Internal Revenue Service in the space provided.
Check the box next to the deceased taxpayer’s SSN if you are an executor, administrator, or spouse filing a return for a deceased taxpayer.
Check the box on the first page of your return if you are filing Form CT-1040CRC, Claim of Right Credit.
Check the box on the first page of your return if you are filing Form CT-2210, Underpayment of Estimated Income Tax by Individuals, Trusts and Estates.
Check the box on the first page of your return if you are filing Form CT-8379, Nonobligated Spouse Claim. See Nonobligated Spouse, on Page 16.
If you filed joint estimated tax payments but elect or are required to file separate income tax returns, both you and your spouse must file your income tax returns at the same time. No refund will be processed until both Connecticut returns are received.
Use the correct DRS mailing address on the envelope when filing your paper return. One address is for all tax forms with payment. The other address is for refunds and all other tax forms without payment. See Mailing Addresses for Form CT-1040, on Page 13.
If you qualify to claim the Connecticut Earned Income Tax Credit (CT EITC), complete and attach Schedule CT-EITC, Connecticut Earned Income Tax Credit. Part-year residents and Nonresidents of Connecticut do not qualify for the CT EITC.
Elect direct deposit, by completing Lines 25a through 25c, for the fastest way to receive your refund. This option is not available to first-time filers. If you do not elect direct deposit, a refund check will be issued and refund processing may be delayed.
If you have additional tax due with your electronically filed income tax return, send your payment with the CT-1040V, Connecticut Electronic Filing Payment Voucher. Do not send a paper copy of your electronically filed return with the payment.
Important Information
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If you are filing an estimated income tax payment that is due April 15 using the CT-1040ES, Estimated Connecticut Income Tax Payment Coupon for Individuals, and you are filing a CT-1040V, Connecticut Electronic Filing Payment Voucher, to pay any additional tax due, make sure you include the correct payment that corresponds with each form.
If you are completing Form CT-2210, Underpayment of Estimated Income Tax by Individuals, Trusts, and Estates, to calculate interest due or lower or eliminate interest that would otherwise apply on your underpaid estimated Connecticut income tax, make sure you check the appropriate box on Part 1, Reasons For Filing, if applicable.
Who Must File a Connecticut Resident ReturnYou must file a Connecticut resident income tax return if you were a resident for the entire year and any of the following is true for the 2017 taxable year:• You had Connecticut income tax withheld;• You made estimated tax payments to Connecticut or a
payment with Form CT-1040 EXT;• You meet the Gross Income Test;• You had a federal alternative minimum tax liability; or• You are claiming the Connecticut earned income tax
credit (CT EITC).If none of the above apply, do not file a Connecticut resident income tax return.Gross income means all income you received in the form of money, goods, property, services not exempt from federal income tax, and any additions to income required to be reported on Form CT-1040, Schedule 1.Gross income includes income from all sources within Connecticut and outside of Connecticut. Gross income includes but is not limited to:• Compensation for services, including wages, fees,
commissions, taxable fringe benefits, and similar items; • Gross income from a business;• Capital gains;• Interest and dividends;• Gross rental income;• Gambling winnings;• Alimony;• Taxable pensions and annuities;• Prizes and awards;• Your share of income from partnerships, S corporations,
estates, or trusts;• IRA distributions;• Unemployment compensation; • Federally taxable Social Security benefits; and• Federally taxable disability benefits.
Gross Income TestYou must file a Connecticut income tax return if your gross income for the 2017 taxable year exceeds:• $12,000 and you are married filing separately;• $15,000 and you are filing single;• $19,000 and you are filing head of household; or• $24,000 and you are married filing jointly or qualifying
widow(er) with dependent child.The following examples explain the gross income test for a Connecticut resident:
Example 1: Your only income is from a sole proprietorship and you file federal Form 1040 reporting the following on Schedule C: Gross Income $100,000 Expenses ($92,000) Net Income $8,000Because the gross income of $100,000 exceeds the minimum requirement, you must file a Connecticut income tax return.
Example 2: You received $8,000 in federally nontaxable Social Security benefits and $11,000 in interest income. Since nontaxable Social Security benefits are not included in gross income, you do not have to file a Connecticut income tax return unless Connecticut tax was withheld or estimated tax payments were made.
Example 3: You are a single individual. You received $15,000 in wage income and $1,000 in federally-exempt interest from California state bonds. Your gross income (federal adjusted gross income with any additions to income from Form CT-1040, Schedule 1, Line 31, Interest on state and local government obligations other than Connecticut) is $16,000. Therefore, you must file a Connecticut income tax return.
Filing the Connecticut Income Tax Return ElectronicallyMost Connecticut taxpayers may use the DRS Taxpayer Service Center (TSC) to file their Connecticut income tax return at www.ct.gov/TSC. Electronically filing and paying your taxes is easy and accurate. It provides you with confirmation of receipt and reduces the possibility of errors. While some taxpayers may be reluctant to make electronic payments for security reasons, we want to assure you that our electronic funds transfer is safe and secure.You may electronically file your Connecticut income tax return through the TSC if all of the following are true: You filed a Connecticut income tax return in the last three
years; or you have never filed a Connecticut income tax return, but you have a valid Connecticut driver’s license or Connecticut non-driver ID;
Your filing status is the same as the last return DRS has on file, or, if your filing status changed since your last filing, your new filing status is displayed in the drop-down menu.
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If your new filing status is not displayed in the drop-down menu, visit the DRS website at www.ct.gov/DRS, select For Individuals and select E-Services for information on other e-filing options;
You are not filing Form CT-1040CRC, Claim of Right Credit; and
You have no more than ten Forms W-2 or 1099 that show Connecticut income tax withheld.
Do not send a paper copy of your electronically filed return with the payment. Send only Form CT-1040V, 2017 Connecticut Electronic Filing Payment Voucher, with your payment.
Relief From Joint LiabilityIn general, if you and your spouse file a joint income tax return, you are both responsible for paying the full amount of tax, interest, and penalties due on your joint return. However, in very limited and specific cases, relief may be granted if you believe all or any part of the amount due should be paid only by your spouse. You may request consideration by filing Form CT-8857, Request for Innocent Spouse Relief (And Separation of Liability and Equitable Relief).The statute of limitations for requesting innocent spouse relief or separation of liability is two years from the date on which the DRS begins collection activities against you.For equitable relief requests, the statute of limitations applicable to federal equitable relief requests will be applicable to Connecticut equitable relief requests. This statute of limitations is applicable to all open equitable relief requests.See Policy Statement 2016(2), Innocent Spouse Relief, Separation of Liability, and Equitable Relief.
Title 19 RecipientsIf you are a Title 19 recipient, you must file a Connecticut income tax return if you meet the requirements for Who Must File a Connecticut Resident Return on Page 9.However, if you do not have funds to pay your Connecticut income tax, complete Form CT-19IT, Title 19 Status Release, and attach it to the front of your Connecticut income tax return if the following two conditions apply:• You were a Title 19 recipient during 2017; and• Medicaid assisted in the payment of your long-term care
in a nursing or convalescent home during 2017.Completing this form authorizes DRS to verify your Title 19 status for 2017 with the Department of Social Services.
Deceased TaxpayersAn executor, administrator, or surviving spouse must file a Connecticut income tax return, for that portion of the year before the taxpayer’s death, for a taxpayer who died during the year if the requirements for Who Must File a Connecticut Resident Return are met. The executor, administrator, or
surviving spouse must check the box next to the deceased taxpayer’s SSN on the front page of the return; sign for the deceased taxpayer on the signature line; and indicate the date of death.Generally, the Connecticut and federal filing status must be the same. A surviving spouse may file a joint Connecticut income tax return if the surviving spouse filed a joint federal income tax return. Write “filing as surviving spouse” in the deceased spouse’s signature line on the return. If both spouses died in 2017, their legal representative must file a final return.
Claiming a Refund for a Deceased Taxpayer If you are a surviving spouse filing jointly with your deceased spouse, you may claim the refund on the jointly-filed return. If you are a court-appointed representative, file the return and attach a copy of the certificate that shows your appointment. All other filers requesting the deceased taxpayer’s refund must file the return and attach federal Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, to the front of the return.Refund claims for deceased taxpayers should be made as soon as possible during the annual filing period. Under federal law, personal Social Security Numbers are not protected after death and will be disclosed by the Social Security Administration upon request. This is a major cause of fraudulent refund claims filed and paid before the legitimate taxpayer’s claim is filed.Income received by the estate of the decedent for the portion of the year after the decedent’s death, and for succeeding taxable years until the estate is closed, must be reported each year on Form CT-1041, Connecticut Income Tax Return for Trusts and Estates.
Special Information for Nonresident AliensIf you are a nonresident alien, you must file a Connecticut income tax return if you meet the requirements of Who Must File a Connecticut Resident Return, on Page 9. In determining whether you meet the gross income test, you must take into account any income not subject to federal income tax under an income tax treaty between the United States and the country of which you are a citizen or resident. Income tax treaty provisions are disregarded for Connecticut income tax purposes. Any treaty income you report on federal Form 1040NR or Form 1040NR-EZ and not subject to federal income tax must be added to your federal adjusted gross income. See Form CT-1040, Schedule 1, Line 37, or Form CT-1040NR/PY, Schedule 1, Line 39.If you do not have and are not eligible for a Social Security Number (SSN), you must obtain an Individual Taxpayer Identification Number (ITIN) from the IRS and enter it in the space provided for an SSN. You must have applied for and been issued an ITIN before you file your income tax return. However, if you have not received your ITIN by April 15, file your return without the ITIN, enter Applied For or NRA in the SSN field, pay the tax due, and attach a copy of federal Form W-7, Application for IRS Individual Taxpayer Identification
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or out of Connecticut during the 2017 taxable year. If you are a part-year resident, you may not elect to be treated as a resident individual. If you are a part-year resident and you meet the requirements for Who Must File Form CT-1040NR/PY for the 2017 taxable year, you must file Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return.
NonresidentYou are a nonresident for the 2017 taxable year if you are neither a resident nor a part-year resident for the 2017 taxable year. If you are a nonresident and you meet the requirements for Who Must File Form CT-1040NR/PY for the 2017 taxable year, you must file Form CT-1040NR/PY.If you meet all of the conditions in Group A or Group B, you may be treated as a nonresident for 2017 even if your domicile was Connecticut.
Group A1. You did not maintain a permanent place of abode in
Connecticut for the entire 2017 taxable year;2. You maintained a permanent place of abode outside of
Connecticut for the entire 2017 taxable year; and 3. You spent not more than 30 days in the aggregate in
Connecticut during the 2017 taxable year.Group B1. You were in a foreign country for at least 450 days during
any period of 548 consecutive days;2. During this period of 548 consecutive days, you did not
spend more than 90 days in Connecticut and you did not maintain a permanent place of abode in Connecticut at which your spouse (unless legally separated) or minor children spent more than 90 days; and
3. During the nonresident portion of the taxable year in which the 548-day period begins, and during the nonresident portion of the taxable year in which the 548-day period ends, you were present in Connecticut for no more than the number of days that bears the same ratio to 90 as the number of days in the portion of the taxable year bears to 548. See the calculation below:
548
Number of days in the nonresident portion x 90 =
Maximum days allowed in
Connecticut
See Special Notice 2000(17), 2000 Legislation Affecting the Connecticut Income Tax.
Military Personnel Filing RequirementsMilitary personnel and their spouses who claim Connecticut as a residence but are stationed elsewhere are subject to Connecticut income tax.If you enlisted in the military service as a Connecticut resident and have not established a new domicile (permanent legal residence) elsewhere, you are required to file a resident
Number. DRS will contact you upon receipt of your return and will hold your return until you receive your ITIN and you forward the information to us. DRS cannot process your return until we receive the ITIN.A married nonresident alien may not file a joint Connecticut income tax return unless the nonresident alien is married to a citizen or resident of the United States and they have made an election to file a joint federal income tax return and they do, in fact, file a joint federal income tax return. Any married individual filing federal Form 1040NR or federal Form 1040NR-EZ is not eligible to file a joint federal income tax return or a joint Connecticut income tax return and must file a Connecticut income tax return as filing separately.
Resident, Part-Year Resident, or NonresidentThe following terms are used in this section:Domicile (permanent legal residence) is the place you intend to have as your permanent home. It is the place you intend to return to whenever you are away. You can have only one domicile although you may have more than one place to live. Your domicile does not change until you move to a new location and definitely intend to make your permanent home there. If you move to a new location but intend to stay there only for a limited time (no matter how long), your domicile does not change. This also applies if you are working in a foreign country.Permanent place of abode is a residence (a building or structure where a person can live) that you permanently maintain, whether or not you own it, and generally includes a residence owned by or leased to your spouse. A place of abode is not permanent if it is maintained only during a temporary stay for the accomplishment of a particular purpose.
ResidentYou are a resident for the 2017 taxable year if:• Connecticut was your domicile (permanent legal
residence) for the entire 2017 taxable year; or• You were not domiciled in Connecticut but you
maintained a permanent place of abode in Connecticut during the entire 2017 taxable year and spent a total of more than 183 days in Connecticut during the 2017 taxable year.
Nonresident aliens who meet either of these conditions are considered Connecticut residents even if federal Form 1040NR-EZ or federal Form 1040NR is filed for federal income tax purposes. See also Special Rules for Married Individuals on Page 18 and Special Information for Nonresident Aliens on Page 10.If you are a resident and you meet the requirements for Who Must File a Connecticut Resident Return for the 2017 taxable year, you must file Form CT-1040.
Part-Year ResidentYou are a part-year resident for the 2017 taxable year if you changed your permanent legal residence by moving into
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income tax return unless you meet all of the conditions in Group A or Group B for being treated as a nonresident. See Resident, Part-Year Resident, or Nonresident, above.If your permanent home (domicile) was outside Connecticut when you entered the military, you do not become a Connecticut resident because you are stationed and live in Connecticut. As a nonresident, your military pay is not subject to Connecticut income tax. However, income you receive from Connecticut sources while you are a nonresident may be subject to Connecticut income tax. See the instructions for a Connecticut nonresident contained in the instruction booklet for Form CT-1040NR/PY. See Example, below.
Example: Jill is a resident of Florida. She enlisted in the Navy in Florida and was stationed in Groton, Connecticut. She earned $38,000 in military pay.If Jill had no other income . . . Since Jill resided and enlisted in Florida, she is considered a resident of Florida and does not have to file a Connecticut return. Military personnel are residents of the state in which they resided when they enlisted. If Jill had a part-time job in Connecticut . . . Her Connecticut-sourced income from nonmilitary employment is taxable. Jill must file Form CT-1040NR/PY to report the income.
Spouses of military personnel, see Informational Publication 2015(24), Connecticut Income Tax Information for Armed Forces Personnel and Veterans.
Combat Zone The income tax return of any individual in the U.S. Armed Forces serving in a combat zone or injured and hospitalized while serving in a combat zone is due 180 days after returning. There will be no penalty or interest charged. For any individual who dies while on active duty in a combat zone or as a result of injuries received in a combat zone, no income tax or return is due for the year of death or for any prior taxable year ending on or after the first day serving in a combat zone. If any tax was previously paid for those years, the tax will be refunded to the legal representative of the estate or to the surviving spouse upon the filing of a return on behalf of the decedent. In filing the return on behalf of the decedent, the legal representative or the surviving spouse should enter zero tax due and attach a statement to the return along with a copy of the death certificate.Combat zone is an area designated by an Executive Order from the President of the United States as areas in which the U.S. Armed Forces are engaging or have engaged in combat. A combat zone also includes an area designated by the federal government as a qualified hazardous duty area. Spouses of military personnel and civilians supporting the military in a combat zone region who are away from their permanent duty stations, but are not within the designated combat zone, are also eligible for the 180 day extension.Individuals requesting an extension under combat zone
provisions should print both the name of the combat zone and the operation they served with at the top of their Connecticut tax return. This is the same combat zone or operation name provided on their federal income tax return. See Informational Publication 2015(24), Connecticut Income Tax Information for Armed Forces Personnel and Veterans.
Connecticut Adjusted Gross IncomeConnecticut adjusted gross income is your federal adjusted gross income as properly reported on federal Form 1040, Line 37; federal Form 1040A, Line 21; or federal Form 1040EZ, Line 4; and any Connecticut modifications required to be reported on Form CT-1040, Schedule 1.
Taxable Year and Method of AccountingYou must use the same taxable year for Connecticut income tax purposes as you use for federal income tax purposes. Most individuals use the calendar year as their taxable year for federal income tax purposes. However, if the calendar year is not your taxable year for federal income tax purposes, references in this booklet to 2017 are references to your taxable year beginning during 2017.You must use the same method of accounting for Connecticut income tax purposes as you use for federal income tax purposes.If your taxable year or method of accounting is changed for federal income tax purposes, the same change must be made for Connecticut income tax purposes.
When to FileYour Connecticut income tax return is due on or before April 15, 2018. If you are not a calendar year filer, your return is due on or before the fifteenth day of the fourth month following the close of your taxable year. If the due date falls on a Saturday, Sunday, or legal holiday, the return will be considered timely filed if filed by the next business day.The 2017 Connecticut income tax return (and payments) will be considered timely if filed on Tuesday, April 17, 2018.In 2018, the due date for filing a Connecticut income tax return (April 15) falls on a Sunday, the next business day is Monday, April 16, which is a legal holiday in the District of Columbia (Emancipation Day). Therefore, for filing purposes the next business day is Tuesday, April 17, 2018.Your return meets the timely filed and timely payment rules if the U.S. Postal Service cancellation date, or the date recorded or marked by a designated private delivery service (PDS) using a designated type of service, is on or before the due date. Not all services provided by these designated PDSs qualify. This list is subject to change. See Policy Statement 2016(4), Designated Private Delivery Services and Designated Types of Service, for a current list of qualified PDSs.If Form CT-1040 is filed late or all the tax due is not paid with the return, see Interest and Penalties on Page 15 to determine if interest and penalty must be reported with the return.
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Extension RequestsExtension of Time to FileTo request an extension of time to file your return, you must file Form CT-1040 EXT, Application for Extension of Time to File Connecticut Income Tax Return for Individuals, and pay all the tax you expect to owe on or before the due date. Visit www.ct.gov/TSC to file your extension electronically. Form CT-1040 EXT extends only the time to file your return; it does not extend the time to pay your tax due. See Interest and Penalties on Page 15 if you do not pay all the tax due with your extension request. You do not need to file Form CT-1040 EXT if you:• Have requested an extension of time to file your 2017
federal income tax return and you expect to owe no additional Connecticut income tax for the 2017 taxable year after taking into account any Connecticut income tax withheld from your wages and any Connecticut income tax payments you have made; or
• Pay your expected 2017 Connecticut income tax due using a credit card on or before the due date.
You must file Form CT-1040 EXT if you:• Did not request an extension of time to file your federal
income tax return, but you are requesting an extension of time to file your Connecticut income tax return; or
• Have requested an extension of time to file your federal income tax return but you expect to owe additional Connecticut income tax for 2017 and wish to submit a payment with Form CT-1040 EXT.
If you file an extension request with a payment after the due date, generally April 15, DRS will deny your extension request.
U.S. Citizens Living AbroadIf you are a U.S. citizen or resident living outside the United States and Puerto Rico, or if you are in the armed forces of the United States serving outside the United States and Puerto Rico and are unable to file a Connecticut income tax return on time, you must file Form CT-1040 EXT. You must also pay the amount of tax due on or before the original due date of the return.Include with Form CT-1040 EXT a statement that you are a U.S. citizen or resident living outside the United States and Puerto Rico, or in the armed forces of the United States serving outside the United States and Puerto Rico, and that you qualify for a federal automatic extension. If your application is approved, the due date is extended for six months.If you received a federal extension of time to file beyond six months, to qualify for the federal foreign earned income exclusion and for the foreign housing exclusion or deduction, you may file your Connecticut return using the federal extension due date. Submit a copy of the approved federal Form 2350, Application for Extension of Time to File U.S. Income Tax return by attaching it to the front of your Form CT-1040.
Extension of Time to PayYou may be eligible for a six-month extension of time to pay the tax due if you can show that paying the tax by the due date will cause undue hardship. You may request an extension by filing Form CT-1127, Application for Extension of Time for Payment of Income Tax, on or before the due date of the original return. Attach Form CT-1127 to the front of Form CT-1040 or Form CT-1040 EXT and send it on or before the due date. As evidence of the need for extension, you must attach: • An explanation of why you cannot borrow money to pay
the tax due;• A statement of your assets and liabilities; and • An itemized list of your receipts and disbursements for
the preceding three months.If an extension of time to pay is granted and you pay all the tax due in full by the end of the extension period, a penalty will not be imposed. However, interest will accrue on any unpaid tax from the original due date. You should make payments as soon as possible to reduce the interest you would otherwise owe.
Mailing Addresses for Form CT-1040For tax forms with payment enclosed:
Department of Revenue Services PO Box 2977 Hartford CT 06104-2977
For tax forms requesting refunds or tax forms without payment enclosed:
Department of Revenue Services PO Box 2976 Hartford CT 06104-2976
For payments without tax forms:Department of Revenue Services Processing PO Box 5088 Hartford CT 06102-5088
To ensure proper posting of your payment, write “2017 Form CT-1040” and your SSN(s) (optional) on the front of your check.
Estimated Tax Payments for Tax Year 2018You must make estimated income tax payments if your Connecticut income tax (after tax credits) minus Connecticut tax withheld is $1,000 or more and you expect your Connecticut income tax withheld to be less than your required annual payment for the 2018 taxable year.Your required annual payment for the 2018 taxable year is the lesser of:• 90% of the income tax shown on your 2018 Connecticut
income tax return; or
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• 100% of the income tax shown on your 2017 Connecticut income tax return, if you filed a 2017 Connecticut income tax return that covered a 12-month period.
You do not have to make estimated income tax payments if:• You were a Connecticut resident during the 2017 taxable
year, and you did not file a 2017 income tax return because you had no Connecticut income tax liability; or
• You were a nonresident or part-year resident with Connecticut-sourced income during the 2017 taxable year and you did not file a 2017 income tax return because you had no Connecticut income tax liability.
If you were a nonresident or part-year resident and you did not have Connecticut-sourced income during the 2017 taxable year, your required annual payment is 90% of the income tax shown on your 2018 Connecticut income tax return.
Annualized Income Installment MethodIf your income varies throughout the year, you may be able to reduce or eliminate the amount of your estimated tax payment for one or more periods by using the annualized income installment method. See Informational Publication 2015(17), A Guide to Calculating Your Annualized Estimated Income Tax Installments and Worksheet CT-1040 AES.
Filing Form CT-1040ESYou may file and pay your Connecticut estimated tax using the TSC. Visit the DRS website at www.ct.gov/TSC for more information. You may also pay your 2018 estimated Connecticut income tax payments by credit card. Use Form CT-1040ES, Estimated Connecticut Income Tax Payment Coupon for Individuals, to make estimated Connecticut income tax payments for 2018 using a paper return. If you made estimated tax payments in 2017, you will automatically receive coupons for the 2018 taxable year in mid-January. They will be preprinted with your name, address, and the last four digits of the SSN. To ensure your payments are properly credited, use the preprinted coupons.
If you did not make estimated tax payments in 2017, use Form CT-1040ES to make your first estimated income tax payment. Form CT-1040ES is available on the DRS website. If you file this form, additional preprinted coupons will be mailed to you.To avoid making estimated tax payments, you may request your employer to withhold additional amounts from your wages to cover the taxes on other income. You can make this change by giving your employer a revised Form CT-W4, Employee’s Withholding Certificate. For help in determining the correct amount of Connecticut withholding to be withheld from your wage income, see Informational Publication 2018(7), Is My Connecticut Withholding Correct?
Special Rules for Farmers and FishermenIf you are a farmer or fisherman (as defined in IRC §6654(i)(2)) who is required to make estimated income tax payments, you must make only one payment. Your payment is due on or before January 15, 2019, for the 2018 taxable year. The required installment is the lesser of 66 2/3% of the income tax shown on your 2018 Connecticut income tax return or 100% of the income tax shown on your 2017 Connecticut income tax return.If you file a 2018 Connecticut income tax return on or before March 1, 2019, and pay in full the amount computed on the return as payable on or before that date, you will not be charged interest for underpayment of estimated tax.Farmers or fishermen who use these special rules must complete and attach Form CT-2210, Underpayment of Estimated Tax by Individuals, Trusts, and Estates, to their Connecticut income tax return to avoid being billed for interest on the underpayment of estimated income tax. Check Box D of Form CT-2210, Part I, and the box for Form CT-2210 on the front of Form CT-1040. See Informational Publication 2010(16), Farmer’s Guide to Sales and Use Taxes, Motor Vehicle Fuels Tax, Estimated Income Tax, and Withholding Tax, or Informational Publication 2009(14), Fisherman’s Guide to Sales and Use Taxes and Estimated Income Tax.
April 15, 2018 *
June 15, 2018
September 15, 2018
January 15, 2019An estimate is considered timely filed if received on or before the due date, or if the date shown by the U.S. Postal Service cancellation mark is on or before the due date. Taxpayers who report on other than a calendar year basis should use their federal estimated tax installment due dates. If the due date falls on a Saturday, Sunday, or legal holiday, the return will be considered timely if filed by the next business day.
25% of your required annual payment25% of your required annual payment (A total of 50% of your required annual payment should be paid by this date.)25% of your required annual payment (A total of 75% of your required annual payment should be paid by this date.)25% of your required annual payment (A total of 100% of your required annual payment should be paid by this date.)
Due dates of installments and the amount of required payments for 2018 calendar year taxpayers are:2018 Estimated Tax Due Dates
* The April 15, 2018, estimated payment will be considered timely if made on Tuesday, April 17, 2018.
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Filing Form CT-2210You may be charged interest if your 2017 Connecticut income tax (after tax credits) minus Connecticut tax withheld is $1,000 or more. Use Form CT-2210 to calculate interest on the underpayment of estimated tax. Form CT-2210 and detailed instructions are available from DRS. However, this is a complex form and you may prefer to have DRS calculate the interest. If so, do not file Form CT-2210 and DRS will send you a bill.
Interest and PenaltiesIn general, interest and penalty apply to any portion of the tax not paid on or before the original due date of the return.
InterestIf you do not pay the tax when due, you will owe interest at 1% per month or fraction of a month until the tax is paid in full.If you did not pay enough tax through withholding or estimated payments, or both, by any installment due date, you may be charged interest. This is true even if you are due a refund when you file your tax return. See Interest on Underpayment of Estimated Tax on this page.Interest on underpayment or late payment of tax cannot be waived.
Penalty for Late Payment or Late FilingThe penalty for late payment or underpayment of income or use tax is 10% of the tax due. If a request for an extension of time to file has been granted, you can avoid a penalty for failure to pay the full amount due by the original due date if you:• Pay at least 90% of the income tax shown to be due on the
return on or before the original due date of the return; and• Pay the balance due with the return on or before the
extended due date. If you file your return electronically and pay your balance due by check, then your check must be postmarked on whichever is earlier: the date of acceptance of the electronic return or the extended due date.
If no tax is due, DRS may impose a $50 penalty for the late filing of any return or report required by law to be filed.
Penalty for Failure to FileIf you do not file your return and DRS files a return for you, the penalty for failure to file is 10% of the balance due or $50, whichever is greater. If you are required to file Form CT-1040X, Amended Connecticut Income Tax Return for Individuals, and fail to do so, a penalty may be imposed.
Waiver of PenaltyTo make a waiver of penalty request, taxpayers must complete and submit Form DRS-PW, Request for Waiver of Civil Penalty, to the DRS Operations Bureau/Penalty Waiver. Taxpayers may mail Form DRS-PW to the address listed below or fax it to the Operations Bureau/Penalty Waiver at 860-297-5727.
Department of Revenue Services Operations Bureau/Penalty Waiver PO Box 5089 Hartford CT 06102-5089
DRS will not consider a penalty waiver request unless it is accompanied by a fully completed and properly executed Form DRS-PW. The Commissioner cannot consider a request received more than one year from the date a notice of such penalty was first sent to the taxpayer requesting the waiver. For the taxpayer who self reports the penalty on his or her tax return, the filing date of such return is considered the date on which the taxpayer was notified of such penalty. See What’s New on Page 2 and Policy Statement 2017(6), Requests for Waiver of Civil Penalties.
Interest on Underpayment of Estimated TaxYou may be charged interest if you did not pay enough tax through withholding or estimated payments, or both, by any installment due date. This is true even if you are due a refund when you file your tax return. Interest is calculated separately for each installment. Therefore, you may owe interest for an earlier installment even if you paid enough tax later to make up the underpayment. Interest at 1% per month or fraction of a month will be added to the tax due until the earlier of April 15, 2018, or the date on which the underpayment is paid.If you file a 2017 Connecticut income tax return on or before January 31, 2018, and pay in full the amount computed on the return as payable on or before that date, you will not be charged interest for failing to make the estimated payment due January 15, 2018.A farmer or fisherman who is required to make estimated income tax payments will not be charged interest for failing to make the estimated payment due January 15, 2018, if he or she files a 2017 Connecticut income tax return on or before March 1, 2018, and pays in full the amount computed on the return as payable on or before that date.
Refund InformationThere are two ways to get your refund: Direct Deposit or Paper Check.The fastest way to get your refund is to file your return electronically and elect direct deposit. Paper return filers may request direct deposit. The direct deposit option is not available to first-time Connecticut income tax filers.For faster service, DRS recommends that taxpayers use direct deposit to a savings or checking account.For returns filed on paper, you must allow 10 to 12 weeks from the date you mailed the return before checking on the status of your refund. Your refund could be delayed if additional information or identity verification is required to prevent refund theft.Anyone who receives a refund but has not filed a Connecticut income tax return must contact DRS immediately. Call the DRS Fraud Unit at 855-842-1441.
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Option 1: Direct Deposit To elect direct deposit, complete Lines 25a through 25c. See Line 25: Refund, on Page 21.Make your direct deposit successful by:• Confirming your account number and routing number
with your financial institution and entering them clearly on your tax return;
• Entering the direct deposit information separately for both your federal and state electronically filed returns; and
• Printing your software-prepared paper return only after you have entered the direct deposit information into the program.
Some financial institutions do not allow a joint refund to be deposited into an individual account.
Option 2: Paper CheckIf you do not elect direct deposit or are a first-time filer, a refund check will be issued and refund processing may be delayed.
Refund StatusCheck the status of your refund using the TSC by visiting www.ct.gov/myrefund or call 800-382-9463 (Connecticut calls outside the Greater Hartford calling area only) or 860-297-5962 (from anywhere). You must provide your SSN (and your spouse’s if filing jointly) and the exact amount of the refund requested.If DRS does not issue your refund on or before the ninetieth day after we receive your claim for refund, you may be entitled to interest on your overpayment. Interest is computed at the rate of two thirds of one percent (2/3%) for each month or fraction of a month between the ninetieth day following receipt of your properly completed claim for refund or the due date of your return, whichever is later, and the date of notice that your refund is due.
Protecting Taxpayer SecurityTax fraud and refund theft are very serious challenges.DRS is committed to protecting taxpayer identity information and making sure thieves do not steal refunds. DRS continues to increase our anti-fraud efforts in coordination with the IRS, other state tax agencies, and tax preparers.We still encourage taxpayers to file and pay electronically and opt for direct deposit of refunds. However, in situations where fraud is more likely, even direct deposit requests may be converted to a paper check. In other circumstances of suspicious filing, refunds may be delayed while we work with the actual taxpayer to confirm that it is not a fraudulent claim. We ask for your understanding and patience; we are only doing this to protect you.
Anyone who receives a refund but has not filed their Connecticut return must contact the DRS immediately. Call the DRS Fraud Unit at 855-842-1441.
Nonobligated SpouseWhen a joint return is filed and only one spouse owes past-due child support, a debt to any Connecticut state agency, or tax due to another state or the IRS, the spouse who is not obligated may be eligible to claim a share of the joint income tax refund. A nonobligated spouse who received income in 2017 and who made Connecticut income tax payments (withholding or estimates) for the 2017 taxable year may be eligible to claim his or her share of any refund if:• A joint Connecticut tax return was filed for 2017; and• There was an overpayment of tax.If you are a nonobligated spouse, you may claim your share of a joint refund by filing Form CT-8379, Nonobligated Spouse Claim.If you are filing a paper Form CT-1040, check the box on the front of your return to indicate that you are filing Form CT-8379. Attach Form CT-8379 and all forms W-2 and 1099 to the front of your return.If you are filing Form CT-1040 electronically, select the Form CT-8379 indicator on your return. Mail the completed Form CT-8379 and all forms W-2 and 1099 to the Department of Revenue Services, P.O. Box 5035, Hartford, CT 06102-5035.Do not use Form CT-8379 to claim your share of a Connecticut income tax refund that was applied to your spouse’s federal income tax liability. For information about IRS offsets, contact the IRS at the telephone number listed on the Notice of Refund Offset issued to you.
Payment OptionsElectronically filing and paying your taxes is easy and accurate. It provides you with confirmation of receipt and reduces the possibility of errors. While some taxpayers may be reluctant to make electronic payments for security reasons, we want to assure you that our electronic funds transfer is safe and secure.
Pay Electronically To make a direct payment visit the TSC at www.ct.gov/TSC and follow the prompts or visit https://drsindtax.ct.gov. You can authorize DRS to transfer funds from your bank account (checking or savings) to a DRS account by entering your bank account number and your bank routing number.You can file your return any time before the due date and designate the amount of payment and date of transfer. Your bank account will be debited on the date you indicate. You must pay the balance due on or before the due date to avoid penalty and interest.Should you elect to file electronically but make your payment of tax due with a paper check, you are required to remit your payment with Form CT-1040V, 2017 Connecticut Electronic Filing Payment Voucher. Do not send a paper copy of your electronically filed return with the payment.
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Pay by Credit Card or Debit Card You may elect to pay your 2017 Connecticut income tax liability using a credit card (American Express®, Discover®, MasterCard®, VISA® ) or comparable debit card. A convenience fee will be charged by the service provider. You will be informed of the amount of the fee and you may elect to cancel the transaction. At the end of the transaction, you will be given a confirmation number for your records.Visit www.officialpayments.com and select State Payments.Your payment is effective on the date you make the charge.
Pay by MailMake your check payable to Commissioner of Revenue Services. To ensure proper posting of your payment, write “2017 Form CT-1040” and your SSN(s) (optional) on the front of your check. Sign your check and clip it to the front of your return. Do not send cash. DRS may submit your check to your bank electronically.Failure to file or failure to pay the proper amount of tax when due will result in penalty and interest charges. It is to your advantage to file when your return is due whether or not you are able to make full payment. Attach other required forms and schedules, including Supplemental Schedule CT-1040WH, to the back of your return or as directed on the form. You do not need to attach a copy of your previously-filed Form CT-1040 EXT.
Rounding Off to Whole DollarsYou must round off cents to the nearest whole dollar on your return and schedules. If you do not round, DRS will disregard the cents. Round down to the next lowest dollar all amounts that include 1 through 49 cents. Round up to the next highest dollar all amounts that include 50 through 99 cents. However, if you need to add two or more amounts to compute the amount to enter on a line, include cents and round off only the total.
Example: Add two amounts ($1.29 + $3.21) to compute the total ($4.50) to enter on a line. $4.50 is rounded to $5.00 and entered on the line.
DRS does not round when issuing refunds.
Angel Investor Income Tax CreditThe angel investor tax credit is applicable against the income tax and available to investors who meet the requirements of Conn. Gen. Stat. §12-704d, as amended by Conn. Pub. Acts 17-110 §1. An angel investor must apply to Connecticut Innovations, Inc. (CII) to reserve the credit and must receive an Angel Investor Tax Credit Voucher from CII before claiming the credit on the income tax return.The credit is for a cash investment of not less than $25,000 in the qualified securities of a Connecticut business by an angel investor. The credit is equal to 25% of such investor’s cash investment provided the total tax credits allowed to any one investor shall not exceed $250,000 and shall be claimed in the taxable year in which the cash investment was made. The credit cannot be used against the withholding tax liability imposed under Conn. Gen. Stat. §12-707 and cannot exceed the amount of income tax imposed under Chapter 229 of the Connecticut General Statutes for the taxable year.Tax credits cannot be reserved for any investments made on or after July 1, 2019. Any tax credit claimed but not applied against the income tax liability may be carried forward for the five immediately succeeding taxable years until the full credit has been applied.Effective for taxable years commencing on or after January 1, 2016, the angel investor tax credit may be assigned, transferred, or sold. The Form CT-AIT, Angel Investor Tax Credit is now obsolete. You must use Schedule CT-IT Credit to calculate the amount of the Angel Investor Tax Credit you can claim on your return. If your are claiming the Angel Investor Tax Credit, you must complete Part III of the Schedule CT-IT Credit. Attach Schedule CT-IT Credit to the back of your paper return.The tax credit may be claimed by the shareholders or partners of an S corporation or an entity treated as a partnership for federal income tax purposes. If the entity is a single member limited liability company that is disregarded as an entity separate from its owner, the tax credit may be claimed by the limited liability company owner provided the owner is a person subject to Connecticut income tax.
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Before you begin, gather all your records, including all your federal Forms W-2 and 1099. Use this information to complete your federal income tax return. The information on your federal return is needed to complete your Connecticut return. Complete the return in blue or black ink only.
1 Taxpayer InformationFiling Status - Check only one box.Check the appropriate box to indicate your filing status.Generally, your filing status must match your federal income tax filing status for this year. If you are not certain of your filing status for 2017, consult the information in your federal income tax booklet or call the IRS at 800-829-1040.Although you and your spouse file jointly for federal purposes, you may be required to file separate Connecticut returns. See Special Rules for Married Individuals, on this page.If your filing status is qualifying widow(er) with dependent child on federal Form 1040 or 1040A, do not enter your deceased spouse’s name or SSN in the spaces provided for spouse’s name and spouse’s SSN on Form CT-1040.
Special Rules for Married IndividualsWhen one spouse is a Connecticut resident or a nonresident and the other spouse is a part-year resident, each spouse who is required to file a Connecticut income tax return must file as married filing separately.When one spouse is a Connecticut resident and the other is a nonresident, each spouse who is required to file a Connecticut income tax return must file as married filing separately unless they:• File jointly for federal income tax purposes; and• Elect to be treated as if both were Connecticut residents
for the entire taxable year.When both spouses are part-year residents of Connecticut but do not have the same period of residency, married filing separately is their Connecticut income tax filing status.When both spouses are part-year residents of Connecticut and have the same period of residency, they may choose married filing jointly or married filing separately as their Connecticut income tax filing status.When both spouses are nonresidents of Connecticut and only one of you has income derived from or connected with sources within Connecticut, only that spouse is required to file a Connecticut income tax return and that spouse’s Connecticut income tax filing status is married filing separately for Connecticut unless you both elect to file a joint Connecticut income tax return. If an election is made, married filing jointly is your Connecticut income tax filing status.When one spouse is a nonresident alien and the other is a citizen or resident of the United States, each spouse who is required to file a Connecticut income tax return must file as married filing separately unless:
• An election is made by the nonresident alien and his or her spouse to file a joint federal income tax return;
• A married filing joint return is filed for federal income tax purposes; and
• The spouses are otherwise required or permitted to file a joint Connecticut income tax return.
The election to file a joint return means the joint federal adjusted gross income must be used on Form CT-1040, Line 1. It also means the spouse who would not otherwise be required to file is now jointly and severally liable for any tax liability associated with the filing of the income tax return. If you are filing a joint federal return with your spouse but are required to file a separate Connecticut return, each of you will have to recompute your federal adjusted gross income as if you were each filing as married filing separately for federal income tax purposes. Enter on Form CT-1040, Line 1, your income as recalculated.
Social Security Number, Name, and AddressYou must write your Social Security Number (SSN), name, and address in the space provided. If your city or town of residence is different from your mailing address enter the additional information in the space provided. If you file a joint return, enter your SSN and your spouse’s SSN in the order they appear on your federal return. If the taxpayer is deceased, see Deceased Taxpayers on Page 10.If you are a nonresident alien and do not have an SSN, enter your Individual Taxpayer Identification Number (ITIN) in the space provided above your name. Nonresident aliens who have applied for an ITIN from the Internal Revenue Service by filing federal Form W-7, but have not received the ITIN, must wait for the ITIN to be issued before filing their Connecticut tax return. However, if you have not received your ITIN by April 15, file your return without the ITIN, enter Applied For or NRA in the SSN field, pay the tax due, and attach a copy of the federal Form W-7. DRS will contact you upon receipt of your return. DRS will hold your return until you receive your ITIN and you forward the information to us. DRS cannot process your return until we receive the ITIN.
2 Calculate Your TaxLine 1: Federal Adjusted Gross IncomeEnter your federal adjusted gross income from your 2017 federal income tax return. This is the amount reported on federal Form 1040, Line 37; federal Form 1040A, Line 21; or federal Form 1040EZ, Line 4.Nonresident aliens, see Special Information for Nonresident Aliens on Page 10.
Line 2: AdditionsEnter the amount from Form CT-1040, Schedule 1, Line 38. See Additions to Federal Adjusted Gross Income on Page 24.
Completing Form CT-1040
1
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Line 3Add Line 1 and Line 2 and enter the total.
Line 4: SubtractionsEnter the amount from Form CT-1040, Schedule 1, Line 50. See Subtractions From Federal Adjusted Gross Income on Page 25.
Line 5: Connecticut Adjusted Gross IncomeSubtract Line 4 from Line 3 and enter the result. This is your Connecticut adjusted gross income.
Line 6: Income Tax For each filing status, if the amount on Line 5 is: $12,000 or less for married filing separately; $15,000 or less for single; $19,000 or less for head of household; or $24,000 or less for married filing jointly, or qualifying widow(er) with dependent child, enter “0” on Line 6. You do not owe any income tax. Otherwise, calculate your tax using one of the following methods.If your Connecticut adjusted gross income is less than or equal to $102,000, you may use the Tax Tables beginning on Page 38 to find your tax.If your Connecticut adjusted gross income is more than $102,000 but less than or equal to $500,000, you may:1. Use the Income Tax Table on the DRS website at
www.ct.gov/DRS and select Individuals;2. Use the Tax Calculation Schedule beginning on Page 48; or3. Use the online Tax Calculator found on the DRS website
at www.ct.gov/DRS and select Individuals.If your Connecticut adjusted gross income is more than $500,000, visit www.ct.gov/DRS and select Individuals to use the Income Tax Calculator or use the Tax Calculation Schedule beginning on Page 48. You may also use the Income Tax Calculator or the Tax Calculation Schedule if your Connecticut adjusted gross income is less than or equal to $500,000. If you calculate your tax manually, using the tax calculator on the DRS website will ensure your tax calculation is correct.After you have found the calculated tax, enter that amount on Line 6.
Line 7: Credit for Income Taxes Paid to Qualifying JurisdictionsIf all or part of the income reported on this return is subject to income tax in a qualifying jurisdiction and you have filed a return and paid income taxes to that jurisdiction, complete Form CT-1040, Schedule 2, and enter the amount from Line 59 here. See Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions on Page 28.You must attach a copy of your return filed with the qualifying jurisdiction(s) or the credit will be disallowed.
Line 8Subtract Line 7 from Line 6 and enter the result. If Line 7 is greater than Line 6, enter “0.”
Line 9: Connecticut Alternative Minimum TaxIf you were required to pay the federal alternative minimum tax for 2017, you must file Form CT-6251, Connecticut Alternative Minimum Tax Return - Individuals. Enter the amount shown on Form CT-6251, Line 23.
Line 10Add Line 8 and Line 9 and enter the total. Line 11: Credit for Property Taxes Paid on Your Primary Residence, Motor Vehicle, or BothIf Line 10 is zero, skip Line 11 and Line 12 and go to Line 13. Otherwise, complete and attach Schedule 3 on Page 4 of Form CT-1040 to be allowed this credit. Enter the amount from Line 68 on Line 11. Be certain to include all of the requested information or your credit may be denied. See Schedule 3 - Property Tax Credit on Page 31.You may also use the online Property Tax Credit Calculator found on the DRS website at www.ct.gov/DRS and select Individual. If you choose to use the online calculator, you must complete lines 60 through 63 of Schedule 3, Property Tax Credit found on the CT-1040, Page 4 or your credit will be denied.The credit is limited to Connecticut residents who paid qualifying property tax on their residence and/or motor vehicle AND one or more of the following statements apply:• You or your spouse is 65 years of age or older by the end
of the taxable year. • You claim one or more dependents on your federal tax
return. The maximum property tax credit allowed is $200 per return regardless of filing status. See Property Tax Credit Table on Page 32. This credit can be used to offset only your 2017 income tax. You may not carry this credit forward and it is not refundable.
Line 12Subtract Line 11 from Line 10 and enter the result. If less than zero, enter “0.”
Line 13: Allowable CreditsEnter the amount from Schedule CT-IT Credit, Income Tax Credit Summary, Part I, Line 11.Use Schedule CT-IT Credit to claim the Angel Investor Tax Credit (see Angel Investor Tax Credit, on Page 17) or to claim the credit for a prior year alternative minimum tax from Form CT-8801, Credit for Prior Year Connecticut Minimum Tax for Individuals, Trusts and Estates.
Line 14: Connecticut Income TaxSubtract Line 13 from Line 12 and enter the result. If less than zero, enter “0.”
Line 15: Individual Use TaxComplete the Connecticut Individual Use Tax Worksheet on Page 33, then complete and attach Schedule 4 on Page 4 of
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Form CT-1040. Enter on Line 15 the total use tax due as reported on Schedule 4, Line 69. You must enter “0” if no Connecticut use tax is due; otherwise you have not filed a use tax return. Failure to report use tax due on Line 15 and include that amount in Line 16 may subject you to a penalty of up to $5,000, imprisonment for up to 5 years, or both. See Pages 5, 6, and 34 for more information on the use tax.
Line 16 and Line 17 Add Line 14 and Line 15. Enter the total on Line 16 and Line 17.
3 PaymentsLine 18: Connecticut Tax WithheldFor each federal form W-2 or 1099 where Connecticut income tax was withheld, enter the following on Lines 18a through 18e.
Copy 1 For State, City, or Local Tax Department
Wage and TaxStatement
Department of the Treasury - Internal Revenue Service
15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name
f Employee’s address and ZIP code
D Control number
b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld
3 Social security wages 4 Social security tax withheld
5 Medicare wages and tips 6 Medicare tax withheld
7 Social security tips 8 Allocated tips
9 10 Dependent care benefits
11 Nonqualified plans 12a
13
14 Other
c Employer's name, address, and ZIP code
e Employee's first name and initial Last name
a Employee’s social security number
OMB No. 1545-0008
W-2 2017
22222
Code
12bCode
12cCode
12dCode
Statutoryemployee
Retirementplan
Third-partysick pay
Form
Suff.
XX-XXXXXXX
Enter the number from Box b inColumn A of Form CT-1040.
Box 15 must show CTto be claimed as
Connecticut withholding.
Enter the amount fromBox 16 in Column Bof Form CT-1040.
XXX.00XXX.00CTCT
Enter the amount from Box 17(in whole dollars) in Column C
of Form CT-1040.
Column A: Enter the Employer Identification Number or Payer Identification Number.Column B: Enter the amount of Connecticut wages, tips, etc. Column C: Enter the amount of Connecticut income tax withheld.You must complete all columns or your Connecticut withholding will be disallowed. Do not include tax withheld for other states or federal income tax withholding. If you have more than five federal form W-2 or 1099 showing Connecticut income tax withheld, you must complete and attach Supplemental Schedule CT-1040WH, Connecticut Income Tax Withholding. Enter on Supplemental Schedule CT-1040WH only Connecticut income tax withholding amounts not previously reported on Form CT-1040. Enter the total from Supplemental Schedule CT-1040WH, Line 3, on the last line of Column C, Line 18f. Add all entries in Column C (including the additional amount from Supplemental Schedule CT-1040WH) and enter the total Connecticut income tax withheld on Line 18.
Do not send copies of form W-2 or 1099. Keep these for your records. DRS may request them at a later date.When filing Form CT-8379, Nonobligated Spouse Claim, attach all forms W-2 and 1099.
Line 19: All 2017 Estimated Tax PaymentsEnter the total of all Connecticut estimated tax payments, advance tax payments, and any overpayments of Connecticut income tax applied from a prior year. Include any 2017 estimated payments made in 2017. Do not include any refunds received.
Line 20: Payments Made With Form CT-1040 EXTIf you filed Form CT-1040 EXT, Application for Extension of Time to File, enter the amount you paid with that form.
Line 20a: Connecticut Earned Income Tax CreditA Connecticut resident taxpayer may claim an earned income tax credit (CT EITC) against the Connecticut income tax due for the taxable year. The amount of the CT EITC is 23% of the earned income credit claimed and allowed on the federal income tax return for the same taxable year. If the CT EITC exceeds the taxpayer’s Connecticut income tax liability, the excess is considered an overpayment and will be refunded without interest.Complete Schedule CT-EITC, Connecticut Earned Income Tax Credit, to calculate your earned income tax credit. Enter the amount from Schedule CT-EITC, Line 16.You must attach a copy of your schedule or the credit will be disallowed.
Line 20b: Claim of Right CreditIf you have claim of right income for federal tax purposes and are claiming the federal claim of right credit on your 2017 federal return, you may also be entitled to a claim of right credit for Connecticut income tax purposes.If during your 2017 taxable year you had to repay income you included in your Connecticut adjusted gross income for an earlier taxable year, and the amount you repaid is more than $3,000, you may be able to claim a credit against your Connecticut income tax for your 2017 taxable year. If you are eligible for the Connecticut Claim of Right Credit, complete Form CT-1040CRC, Claim of Right Credit, to claim a credit equal to the Connecticut income tax you would not have had to pay if the repaid amount had not been included in your Connecticut adjusted gross income in the earlier taxable year.You are eligible for the Connecticut claim of right credit if you meet all of the following conditions:• You were a resident, nonresident, or part-year resident
individual who included income in Connecticut adjusted gross income for an earlier taxable year(s) (year(s) of receipt). A trust or estate is not eligible to claim relief for Connecticut income tax purposes;
• You were required to repay the income during your 2017 taxable year (year of repayment);
• The amount of the repayment exceeds $3,000; and
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• You determined your federal income tax liability for the year of repayment under IRC §1341(a)(4) (see Exceptions) or IRC.
If the Claim of Right Credit exceeds the taxpayer’s Connecticut income tax liability, the excess is considered an overpayment and will be refunded.Complete Form CT-1040CRC, Claim of Right Credit, to calculate your claim of right credit. Enter the amount from Form CT-1040CRC, Line 6.
Line 21: Total PaymentsAdd Lines 18, 19, 20, 20a, and 20b and enter the total. This is the total of your Connecticut tax payments.
4 OverpaymentLine 22: OverpaymentIf Line 21 is greater than Line 17, subtract Line 17 from Line 21 and enter the result. This is your overpayment.To properly allocate your overpayment, go to Lines 23 through 25.If Line 21 is less than Line 17, go to Line 26.If you were required to make estimated income tax payments, but you did not pay enough tax through withholding, estimated tax, or both, by any installment due date, your refund may be reduced by the interest due on the underpayment of estimated tax. See Form CT-2210, Underpayment of Estimated Income Tax by Individuals, Trusts, and Estates.
Line 23: Amount of Line 22 You Want Applied to Your 2018 Estimated TaxEnter the amount of your 2017 overpayment you want applied to your 2018 estimated Connecticut income tax. It will be treated as estimated tax paid on April 15, 2018, if your return is filed on time or if you filed a timely request for extension and your return is filed within the extension period. Payments received after April 15, 2018, will be applied as of the date of receipt. Your request to apply this amount to your 2018 estimated income tax is irrevocable.
Line 24: CHET Contribution from Schedule CT-CHETComplete and attach Schedule CT-CHET, Connecticut Higher Education Trust (CHET) 529 College Savings Plan Contribution to contribute all or part of your Connecticut individual income tax overpayment (Line 22) to a CHET 529 College Savings Plan Account(s). Enter the total contributions as reported on Schedule CT-CHET, Line 4. Your contribution is irrevocable.
Line 24a: Total Contributions to Designated CharitiesYou may make a contribution on this return only if you are entitled to a refund of an overpayment. Your contribution is limited to your refund amount. Complete and attach Schedule 5 on Page 4 of Form CT-1040. Enter the total contributions as reported on Schedule 5, Line 70. Your contribution is irrevocable.
You may also make direct contributions by following the instructions on Page 7.
Line 25: RefundSubtract the total of Lines 23, 24, and 24a from Line 22. The result is the amount of your refund.There are two refund options available:Option 1: Direct DepositComplete Lines 25a, 25b, and 25c to have your refund directly deposited into your checking or savings account. See Refund Information, on Page 15.
This option is not available to first-time filers.Enter your nine-digit bank routing number and your bank account number in Lines 25b and 25c. Your bank routing number is the first nine-digit number printed on your check or savings withdrawal slip. Your bank account number generally follows the bank routing number. Do not include the check number as part of your account number. Bank account numbers can be up to 17 characters.
Routing Number
Name of Depositor Street Address City, State, Zip CodePay to the Order of
No. 101
Name of your BankStreet AddressCity, State, Zip Code
092125789 091 025 025413 0101
$
Date
Account Number
Federal banking rules require DRS to request information about foreign bank accounts (Line 25d) when the taxpayer requests the direct deposit of a refund into a bank account. If the refund is to be deposited in a bank outside the United States, DRS will mail your refund to you.
Option 2: Paper CheckIf you do not elect or qualify for direct deposit, a refund check will be issued and refund processing may be delayed.If you wish to receive a paper check, you must complete Line 25.Your overpayment will be applied in the following order: penalty and interest you owe to DRS; other taxes you owe to DRS; debts to other Connecticut state agencies; federal taxes you owe the IRS; taxes you owe to other states; amounts designated by you to be applied to your 2018 estimated tax; CHET contributions: and charitable contributions designated by you. Any remaining balance will be refunded to you.
5 Amount You OweLine 26: Tax DueIf Line 17 is greater than Line 21, subtract Line 21 from Line 17 and enter the result. This is the amount of tax you owe.
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Line 27: Penalty for Late Payment or Late FilingLate Payment Penalty: The penalty for late payment or underpayment of income or use tax is 10% of the amount due. See Penalty for Late Payment or Late Filing on Page 15.Late Filing Penalty: In the event that no tax is due, DRS may impose a $50 penalty for the late filing of any return or report required by law to be filed.
Line 28: Interest for Late Payment or Late FilingIf you fail to pay the tax when due, interest will be charged at 1% per month or fraction of a month from the due date until payment is made.
Line 29: Interest on Underpayment of Estimated TaxIf Line 14 minus Line 18 is $1,000 or more, you may owe interest on estimated tax you either underpaid or paid late. Form CT-2210, Underpayment of Estimated Income Tax by Individuals, Trusts and Estates, can help you determine whether you did underestimate and will help you calculate interest. However, this is a complex form and you may prefer to have DRS calculate the interest. If so, do not file Form CT-2210; leave this line blank and DRS will send you a bill. Interest on underpayment of estimated income tax stops accruing on the earlier of the day you pay your tax or April 15, 2018.
Line 30: Total Amount DueAdd Lines 26 through 29 and enter the total. This is the total amount you owe. Pay the amount in full with your return. See Payment Options on Page 16.
6 Sign Your ReturnAfter you complete Form CT-1040, sign your name and write the date you signed the return. Your spouse must also sign and enter the date if this is a joint return. The signature line is on Page 2 of Form CT-1040.If you file a joint return, you must review the information with your spouse. When both you and your spouse sign the return, you become jointly and severally responsible for paying the full amount of tax, interest, and penalties due. In addition, you and your spouse will be jointly entitled to any refund which will be issued to both names listed on the return.
Taxpayer’s Email AddressDRS tax returns have a line for taxpayers to enter their email address. If you provide an email address, DRS may use it to notify you of tax changes and programs. However, DRS will never use email to ask for sensitive information, such as your Social Security Number. If you ever have questions about an email claiming to be from DRS, contact DRS directly. See Tax Information, on back cover.
Paid Preparer SignatureAnyone you pay to prepare your return must sign and date it. Paid preparers must also enter their Preparer Tax Identification Number (PTIN), and their firm’s Federal Employer Identification Number (FEIN) in the spaces provided.
Alternative Signature MethodsDRS conforms to IRS Notice 2004-54, which provides for alternative preparer signature procedures for federal income tax paper returns that paid practitioners prepare on behalf of their clients. Specifically, income tax return preparers may sign original returns, amended returns, or requests for filing extensions by rubber stamp, mechanical device, or computer software program. These alternative methods of signing must include either a facsimile of the individual preparer’s signature or the individual preparer’s printed name.Income tax return preparers who use alternative methods of signing must provide all of the other preparer information that is required on returns and extensions, such as the name, address, relevant employer identification number, the preparer’s tax preparer tax identification number (PTIN), and phone number.Paid preparers can follow the same procedure with respect to paper Connecticut income tax returns prepared on behalf of their clients. This procedure only applies to preparers’ signatures. It does not affect other signature requirements for taxpayers, and does not apply to documents other than tax returns.
Third Party DesigneeTo authorize DRS to contact your friend, family member, or any other person to discuss your 2017 tax return, enter the designee’s name, telephone number, and any five numbers the designee chooses as his or her personal identification number (PIN). To authorize DRS to contact the paid preparer who signed your return, enter “Preparer” in the space for the designee’s name. You do not have to provide the other information requested.If you enter a designee’s name, you and your spouse, if filing a joint return, are authorizing DRS to call the designee to answer any questions that may arise during the processing of your return. You are also authorizing the designee to:• Give DRS any information missing from your return; • Call DRS for information about the processing of your
return or the status of your refund or payment; and • Respond to certain DRS notices you have shared with
the designee about math errors, offsets, and return preparation. The notices will not be sent to the designee.
Once DRS processes the return, the authorization ends. The authorization cannot be revoked. However, the authorization will automatically end no later than the due date (without regard to extensions) for filing your 2018 tax return. This is April 15, 2019, for most taxpayers.Selecting a designee does not replace a power of attorney and will not authorize the designee to receive refunds, bind you to anything (including additional tax liabilities), or represent you before DRS. To authorize another individual to represent you or act on your behalf, you must complete LGL-001, Power of Attorney.
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Income Tax FraudIncome tax fraud is categorized as a class D felony, which carries a fine of not more than $5,000 or imprisonment for not more than five years, or both.
Order of AttachmentsPaper clip your check in payment of the tax due to the front of the income tax form in the appropriate area marked “Clip check here.” To ensure proper posting of your payment, write “2017 Form CT-1040” and your SSN(s) (optional) on the front of your check.If you must file any of the following forms, attach the form(s) to the front of your income tax return in the following order: • Form CT-19IT, Title 19 Status Release;• Form CT-1127, Application for Extension of Time for
Payment of Income Tax;• Form CT-8379, Nonobligated Spouse Claim; and• Federal Form 1310, Statement of Person Claiming
Refund Due a Deceased Taxpayer.Attach other required forms and schedules, including Form CT-1040CRC, Claim of Right Credit; Supplemental Schedule CT-1040WH; Schedule CT-IT Credit ; Schedule CT-CHET; and Schedule CT-EITC, to the back of your return or as directed on the form. You do not need to attach a copy of your previously-filed Form CT-1040 EXT.
Filing Your ReturnKeep a copy of this return and all attachments for your records. Attach to this return any required schedules and forms. Do not attach copies of your federal income tax return or federal schedules.
DRS does not provide return envelopes for mailing completed forms. See Mailing Addresses for Form CT-1040, on Page 13 for the correct address to use for returns with payments, returns with refunds, or payments only.
RecordkeepingMake copies of your tax return; completed worksheets and schedules; and records of all items appearing on the return (such as forms W-2 and 1099). Retain copies until the statute of limitations expires for that return. Usually, this is three years from the date the return was due or filed, whichever is later. You may need this information to prepare future returns or to file amended returns.
Copies of ReturnsYou may request a copy of a previously-filed Connecticut income tax return from DRS by completing LGL-002, Request for Disclosure of Tax Return or Tax Return Information. You can usually expect to receive your copy in approximately three weeks. You may also visit www.ct.gov/TSC to view and print copies of the current year and the two prior years income tax returns.
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Form CT-1040 Schedules
The following modifications to federal adjusted gross income are provided in Conn. Gen. Stat. §12-701(a)(20). Your federal adjusted gross income may not be further modified in determining your Connecticut adjusted gross income except as expressly provided by Conn. Gen. Stat. §12-701(a)(20).
Schedule 1 Modifications to Federal Adjusted Gross IncomeAdditions to Federal Adjusted Gross Income
Enter all amounts as positive numbers.
Line 31: Interest on State and Local Government Obligations Other Than ConnecticutEnter the total amount of interest income derived from state and municipal government obligations (other than obligations of the State of Connecticut or its municipalities) which is not taxed for federal income tax purposes. Do not enter interest income derived from government obligations of Puerto Rico, Guam, American Samoa, or U.S. Virgin Islands.
Line 32: Exempt-Interest Dividends From a Mutual Fund Derived From State or Municipal Government Obligations Other Than ConnecticutEnter the total amount of exempt-interest dividends received from a mutual fund that are derived from state and municipal government obligations other than obligations of the State of Connecticut or its municipalities. If the exempt-interest dividends are derived from obligations of Connecticut and other states, enter only the percentage derived from non-Connecticut obligations. Do not enter exempt-interest dividends derived from government obligations of Puerto Rico, Guam, American Samoa, or U.S. Virgin Islands.
Example: A fund invests in obligations of many states including Connecticut. Assuming that 20% of the distribution is from Connecticut obligations, the remaining 80% would be added back on this line.
Line 33: Taxable Amount of Lump-Sum Distributions From Qualified Plans Not Included in Federal AGIIf you filed federal Form 4972, Tax on Lump-Sum Distributions, with your federal Form 1040 to compute the tax on any part of a distribution from a qualified plan, enter that part of the distribution on Line 33. Do not enter any part of the distribution reported on federal Form 1040, Line 16a; federal Form 1040A, Line 12a; or federal Form 1040, Schedule D.
Line 34: Beneficiary’s Share of Connecticut Fiduciary AdjustmentIf you have any income from an estate or trust, your share of any Connecticut modifications (that is, your share of the
Connecticut fiduciary adjustment) that applies to the income will be shown on Form CT-1041, Connecticut Income Tax Return for Trusts and Estates, Schedule CT-1041B, Part 1, Column 5. Your share of these modifications should be provided to you by the fiduciary on Schedule CT-1041 K-1. If your share of these modifications is an amount greater than zero, enter the amount on Line 34. If the amount is less than zero, enter the amount on Line 46.If you are a beneficiary of more than one trust or estate, enter the net amount of all modifications, if greater than zero, on Line 34 or, if less than zero, on Line 46.
Line 35: Loss on Sale of Connecticut State and Local Government BondsEnter the total losses from the sale or exchange of notes, bonds, or other obligations of the State of Connecticut or its municipalities used to determine gain (loss) for federal income tax purposes whether or not the entire loss is used in computing federal adjusted gross income.
Line 36: Domestic Production Activity DeductionEnter the amount reported as a domestic production activity deduction on federal Form 1040, Line 35.
Line 37: OtherUse Line 37 to report any of the following modifications:1. Add back any treaty income reported on federal Form
1040NR-EZ or Form 1040NR if a nonresident alien. Enter the words “treaty income” in the space provided.
2. Add back any loss or deduction of an enrolled member of the Mashantucket Pequot Tribe who resides in Indian country of such tribe or any loss or deduction of an enrolled member of the Mohegan Tribe who resides in Indian country of such tribe where the loss or deduction is derived from or connected with Indian country of the tribe. Enter the words “Mashantucket Pequot Tribe enrolled member” or “Mohegan Tribe enrolled member,” as the case may be.
3. Add back any Connecticut income tax deducted on the federal income tax return to arrive at federal adjusted gross income. Do not add back any Connecticut income tax deducted on federal Form 1040, Schedule A.
4. Add back any expenses paid or incurred for the production (including management, conservation, and maintenance of property held for the production) or collection of income exempt from Connecticut income tax which were deducted on the federal return to arrive at federal adjusted gross income.
5. Add back any amortizable bond premium on bonds producing interest income exempt from Connecticut income tax which premiums were deducted on the federal return to arrive at federal adjusted gross income.
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6. Add back any interest or dividend income on obligations or securities of any authority, commission, or instrumentality of the United States which federal law exempts from federal income tax but does not exempt from state income taxes.
7. Add back to the extent deductible in determining federal adjusted gross income, any interest expenses on indebtedness incurred or continued to purchase or carry obligations or securities (the income from which is exempt from Connecticut income tax).
8. Add back the following distributions from an MRA established pursuant to Conn. Gen. Stat. §32-9zz:• 100% of any distribution from such MRA not used
to purchase machinery or equipment for use in Connecticut or manufacturing facilities, as defined in Conn. Gen. Stat. §12-81(72), or for workforce training, development or expansion in Connecticut; and
• 100% of any return of money remaining in the MRA at the end of the five-year period after such account’s creation or organization, including any interest earned.
See Special Notice 2012(6), 2012 Legislative Changes Affecting the Income Tax.
9. Add back, to the extent not properly includible in gross income for federal income tax purposes, any compensation required to be recognized under 26 U.S.C. §457A that is attributable to services performed within Connecticut.
10. Also use Line 37 to report any additions to federal adjusted gross income required for Connecticut income tax purposes which are not listed on Lines 31 through 36.
Line 38: Total AdditionsAdd Lines 31 through 37 and enter the total.
Subtractions From Federal Adjusted Gross Income
Enter all amounts as positive numbers.
Line 39: Interest on U.S. Government ObligationsEnter the total amount of interest income (to the extent includible in federal adjusted gross income) derived from U.S. government obligations, which federal law prohibits states from taxing (for example, U.S. government bonds such as Saving Bonds Series EE or Series HH and U.S. Treasury bills or notes).For Series EE U.S. Savings Bonds, you are entitled to include on Line 39 only the amount of interest subject to federal income tax after exclusion of the amounts reported on federal Form 8815. In general, you will report the net taxable amount on federal Form 1040, Schedule B, or federal Form 1040A, Schedule 1.
Do not enter the amount of interest income derived from Federal National Mortgage Association (Fannie Mae) bonds, Government National Mortgage Association (Ginnie Mae) bonds, and Federal Home Loan Mortgage Corporation (Freddie Mac) securities. Federal law does not prohibit states from taxing interest income derived from these obligations and this interest income is taxable for Connecticut income tax purposes.Do not enter the amount of interest paid to you on any federal income tax refund.
Line 40: Exempt Dividends From Certain Qualifying Mutual Funds Derived From U.S. Government ObligationsEnter the total amount of exempt dividends received from a qualifying mutual fund that are derived from U.S. government obligations. A mutual fund is a qualifying fund if, at the close of each quarter of its taxable year, at least 50% of the value of its assets consists of U.S. government obligations. The percentage of dividends that are exempt dividends should be reported to you by the mutual fund.Do not enter the amount of dividend income derived from Federal National Mortgage Association (Fannie Mae) bonds, Government National Mortgage Association (Ginnie Mae) bonds, and Federal Home Loan Mortgage Corporation (Freddie Mac) securities. Federal law does not prohibit states from taxing income derived from these obligations, and this income is taxable for Connecticut income tax purposes.
Example: A qualifying mutual fund pays a dividend of $100. Of the distribution, 55% is attributable to U.S. Treasury bills and 45% to other investments. The amount reported on Line 40 is $55.
See Policy Statement 2005(2), Connecticut Income Tax on Bonds or Obligations Issued by the United States Government, by State Governments, or Municipalities.
Line 41: Social Security Benefit AdjustmentIf you receive Social Security benefits subject to federal income tax, you may reduce or eliminate the amount of your benefits subject to Connecticut income tax.Your Social Security benefits are fully exempt from Connecticut income tax if your required filing status is single or married filing separately and the amount reported on Form CT-1040, Line 1, is less than $50,000; or married filing jointly, qualifying widow(er) with dependent child, or head of household and the amount reported on Form CT-1040, Line 1, is less than $60,000. If this is the case, enter on Line 41 the amount of federally taxable Social Security benefits reported on federal Form 1040, Line 20b, or federal Form 1040A, Line 14b.Your Social Security benefits are partially exempt from Connecticut income tax if your federal adjusted gross income is above the threshold for your filing status. If you used the worksheets in the instructions to federal Form 1040 or federal Form 1040A to calculate the amount of taxable Social Security benefits, complete the Social Security Benefit Adjustment
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Worksheet, above, and enter the amount from Line F on Line 41. If you did not use these worksheets, but instead used worksheets in federal Publication 590-A or federal Publication 915, see Announcement 2017(10), Taxability of Social Security Benefits for Connecticut Income Tax Purposes.You may use the online Social Security Benefit Adjustment Calculator found on the DRS website at www.ct.gov/DRS and select Individuals.If you are using a worksheet not from a federal publication, such as one you printed from a tax preparation program on your computer or one given to you by your tax preparer, you should verify that the line references from these worksheets are the same as the equivalent federal publication to be certain you are using the proper amounts.
Line 42: Refunds of State and Local Income TaxesEnter the amount of taxable refunds of state and local income taxes reported on your federal Form 1040, Line 10. If federal Form 1040, Line 10, is blank or if you filed federal Form 1040A or 1040EZ, enter “0.”
Line 43: Tier 1 and Tier 2 Railroad Retirement Benefits and Supplemental AnnuitiesIf you received Tier 1 or Tier 2, or both, railroad retirement benefits or supplemental annuities during 2017, you may deduct the amount included in your federal adjusted gross income but only to the extent the benefits were not already subtracted from federal adjusted gross income on Line 41 (Social Security Benefit Adjustment). Enter the balance not already subtracted on Line 41 of Tier 1 and Tier 2 railroad retirement benefits reported on federal Form 1040, Line 16b
or Line 20b, or federal Form 1040A, Line 12b or Line 14b. Likewise, enter the amount of railroad unemployment benefits, including sickness benefits paid by the Railroad Retirement Board (RRB) in lieu of unemployment benefits, to the extent included in your federal adjusted gross income. However, do not enter sickness benefits paid by the RRB resulting from an on-the-job injury because these benefits are not included in your federal adjusted gross income.
Line 44: Military Retirement PaySubtract income received as military retirement pay, to the extent included in federal adjusted gross income, if you are a retired member of the armed forces of the United States or the National Guard (retired military member) or if you are a beneficiary receiving survivor benefits under an option or election made by a deceased retired military member.Payments received by a former spouse of a retired military member, under a final decree of divorce, dissolution, annulment, or legal separation or a court ordered, ratified, or approved property settlement incident to a decree dividing military retirement pay, do not qualify for the military retirement pay exclusion.
Line 45: 25% of Connecticut Teacher’s Retirement PaySubtract 25% of the income received from the Connecticut teacher’s retirement system, provided you properly included such income in federal adjusted gross income for federal income tax purposes.
A. Enter the amount reported on your 2017 federal Social Security Benefits Worksheet, Line 1. A. If Line A is zero or less, stop here and enter “0” on Line 41. Otherwise, go to Line B.
B. Enter the amount reported on your 2017 federal Social Security Benefits Worksheet, Line 9. However, if filing separately and you lived with your spouse at any time during 2017, enter the amount reported on Line 7 of your federal Social Security Benefits Worksheet. B.
If Line B is zero or less, stop here. Otherwise, go to Line C.
C. Enter the lesser of Line A or Line B. C.
D. Multiply Line C by 25% (.25). D.
E. Taxable amount of Social Security benefits reported on your 2017 federal Social Security Benefits Worksheet, Line 18. E.
F. Social Security Benefit Adjustment - Subtract Line D from Line E. Enter the amount here and on Form CT-1040, Line 41. If Line D is greater than or equal to Line E, enter “0.” F.
Social Security Benefit Adjustment Worksheet - Line 41Enter the amount from Form CT-1040, Line 1. ....................................................................................
If your filing status is single or married filing separately, is the amount on Line 1 $50,000 or more? Yes: Complete this worksheet. No: Do not complete this worksheet. Enter the amount of federally taxable Social Security benefits you reported on federal
Form 1040, Line 20b, or federal Form 1040A, Line 14b, on Form CT-1040, Line 41.
If your filing status is married filing jointly, qualifying widow(er), or head of household, is the amount on Line 1 $60,000 or more? Yes: Complete this worksheet. No: Do not complete this worksheet. Enter the amount of federally taxable Social Security benefits you reported on federal
Form 1040, Line 20b, or federal Form 1040A, Line 14b, on Form CT-1040, Line 41.
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Line 46: Beneficiary’s Share of Connecticut Fiduciary AdjustmentIf you have any income from an estate or trust, your share of any Connecticut modifications (that is, your share of the Connecticut fiduciary adjustment) that applies to the income will be shown on Form CT-1041, Schedule CT-1041B, Part 1, Column 5. Your share of these modifications should be provided to you by the fiduciary on Schedule CT-1041 K-1. If your share of these modifications is an amount less than zero, enter the amount on Line 46. If the amount is greater than zero, enter the amount on Line 34.If you are a beneficiary of more than one trust or estate, enter the net amount of all modifications if less than zero on Line 46.
Line 47: Gain on Sale of Connecticut State and Local Government BondsEnter the total of all gains from the sale or exchange of notes, bonds, or other obligations of the State of Connecticut or its municipalities used to determine gain (loss) for federal income tax purposes.
Line 48: Connecticut Higher Education Trust (CHET) ContributionsEnter your contributions to a CHET account(s). The modification cannot exceed the maximum allowable contribution. The maximum CHET contribution that may be subtracted is the lesser of (1) the amount of contributions to all CHET accounts during the taxable year; or (2)(A) $5,000 for each individual taxpayer (including individuals whose filing status on their Connecticut income tax return is single, head of household, filing separately, or (B) $10,000 for individuals whose filing status on their Connecticut income tax return is filing jointly or qualifying widow(er) with dependent child.If your CHET contribution during the taxable year exceeds the maximum CHET contribution, the excess may be carried forward for the five succeeding taxable years provided the CHET contribution carried forward and subtracted from federal adjusted gross income of the succeeding taxable years does not exceed the maximum CHET contribution. CHET contributions made in the current taxable year are used before using any carryover from prior years.Enter the CHET account number in the space provided. If you made contributions to more than one account, you enter only one account number. See Special Notice 2006(11), 2006 Legislative Changes Affecting the Income Tax.
Line 49: OtherUse Line 49 to report any of the following modifications:1. Subtract any income or gain of an enrolled member of the
Mashantucket Pequot Tribe who resides in Indian country of such tribe or any income or gain of an enrolled member of the Mohegan Tribe who resides in Indian country of such tribe where the income or gain is derived from or connected with Indian country of the tribe. Enter the words “Mashantucket Pequot Tribe enrolled member” or “Mohegan Tribe enrolled member,” as the case may be.
2. Subtract the amount of interest earned on funds deposited in a Connecticut individual development account to the extent included in federal adjusted gross income.
3. Subtract any interest paid on indebtedness incurred to acquire investments that provide income taxable in Connecticut but exempt for federal purposes, that is not deductible in determining federal adjusted gross income, and is attributable to a trade or business of that individual.
4. Subtract expenses paid or incurred for the production (including management, conservation, and maintenance of property held for production) or collection of income taxable in Connecticut but exempt from federal income tax, that are not deductible in determining federal adjusted gross income, and are attributable to a trade or business of that individual.
5. Subtract the amount of any distributions you received from the CHET fund as a designated beneficiary to the extent includable in your federal adjusted gross income.
Congress passed legislation excluding from federal gross income any distribution from a qualified state tuition program (such as CHET) to the extent the distribution is used to pay for qualified higher education expenses (Pub. L. No. 107-16, §402). To the extent any distribution from CHET is excluded from federal gross income, the amount should not be reported as a subtraction modification on Line 49.
6. Subtract any amortizable bond premium on bonds that provide interest income taxable in Connecticut but exempt from federal income tax, which premiums were not deductible in determining federal adjusted gross income and are attributable to a trade or business of that individual.
7. Subtract the amount of any interest income from notes, bonds, or other obligations of the State of Connecticut included in federal adjusted gross income. This modification includes any Build America Bond tax credit amount if the Build America Bond, as described in Section 1531 of the American Recovery and Reinvestment Act of 2009, was issued by the State of Connecticut or a Connecticut subdivision and only to the extent the credit amount is treated as interest includible in gross income for federal income tax purposes.
8. Subtract the amount of any interest, dividends, or capital gains earned on contributions to accounts established for a designated beneficiary under the Connecticut Homecare Option Program for the Elderly to the extent the interest, dividends, or capital gains are properly included in the gross income of the designated beneficiary for federal income tax purposes.
9. Subtract contributions made to an MRA established pursuant to Conn. Gen. Stat. §32-9zz.
See Special Notice 2012(6), 2012 Legislative Changes Affecting the Income Tax.
10. Subtract 20% of the Cancellation of Debt Income amount that you added to your federal adjusted gross income on either your 2009 or 2010 Form CT-1040, Line 33 or Form CT-1040NR/PY, Line 35. You may subtract 20% of that Cancellation of Debt Income
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amount on the comparable line of your Connecticut income tax return for the 2017 and 2018 taxable years.
11. Subtract the amount, to the extent included in federal adjusted gross income, of any financial assistance received from the Crumbling Foundations Assistance Fund; paid to or on behalf of the taxpayer under the Collapsing Foundations Credit Enhancements Program; or financial assistance received from a municipality by the taxpayer to repair concrete foundations that have deteriorated due to the presence of pyrrhotite.
12. Subtract certain costs incurred by the taxpayer in connection with the donation to another person of human bone marrow, or all or part of a human liver, pancreas, kidney, intestine, or lung, for the purpose of organ transplantation. The costs include lost wages, medical expenses, travel expenses, and housing expenses. The subtraction can not exceed $10,000.
Do not use Line 49 to subtract income subject to tax in a qualifying jurisdiction (see Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions, below) or income of a nonresident spouse. See Special Rules for Married Individuals on Page 18.
Line 50: Total SubtractionsAdd Lines 39 through 49 and enter the total.
Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions
You must first complete Form CT-1040, Schedule 3 - Credit for Property Taxes Paid on Your Primary Residence, Motor Vehicle, or Both, before completing Schedule 2. See the instructions for Schedule 3 - Property Tax Credit on Page 31.
Am I Eligible for the Credit for Income Taxes Paid to Qualifying JurisdictionsIf you are a resident of Connecticut and if any part of your income was taxed by a qualifying jurisdiction, you may be able to claim a credit against your Connecticut income tax liability for qualifying income tax payments you have made.Taxpayers seeking a credit for alternative minimum taxes paid to another jurisdiction must complete Form CT-6251, Connecticut Alternative Minimum Tax Return - Individuals, to calculate their alternative minimum tax credit.
Qualifying JurisdictionA qualifying jurisdiction includes another state of the United States, a local government within another state, or the District of Columbia. A qualifying jurisdiction does not include the State of Connecticut, the United States, or a foreign country or its provinces (for example, Canada and Canadian provinces).
Qualifying Income Tax PaymentsQualifying income tax payments are income taxes you actually paid on income:• Derived from or connected with sources within the
qualifying jurisdiction; and• Subject to tax in the qualifying jurisdiction.
Income Derived From or Connected With Sources Within a Qualifying Jurisdiction• Compensation received for personal services performed
in a qualifying jurisdiction;• Income from a business, trade, or profession carried on
in a qualifying jurisdiction;• Gambling winnings from a state-conducted lottery.
See Informational Publication 2015(23), Connecticut Income Tax Treatment of State Lottery Winnings Received by Residents and Nonresidents of Connecticut; or
• Income from real or tangible personal property situated in a qualifying jurisdiction.
Income from intangibles, such as stocks and bonds, is not considered derived from or connected with sources within a qualifying jurisdiction unless the income is from property employed in a business, trade, or profession carried on in that jurisdiction.
What Payments Do Not Qualify• Income tax payments made to a qualifying jurisdiction on
income not derived from or connected with sources within the qualifying jurisdiction (such as wages not derived from or connected with sources within the qualifying jurisdiction);
• Income tax payments made to a qualifying jurisdiction on income not included in your Connecticut adjusted gross income;
• Income tax paid to a jurisdiction that is not a qualifying jurisdiction, including a foreign country or its provinces (for example, Canada and Canadian provinces);
• Alternative minimum tax paid to a qualifying jurisdiction; • Income tax paid to a qualifying jurisdiction if you claimed
credit on that jurisdiction’s income tax return for income tax paid to Connecticut; or
• Penalties or interest on income taxes you paid to a qualifying jurisdiction.
Limitations to the CreditThe total credit is limited to whichever of the following amounts is least:• The amount of income tax paid to the qualifying
jurisdiction;• The portion of Connecticut income tax due on the
Connecticut adjusted gross income sourced in the qualifying jurisdiction; or
• The amount of your Connecticut income tax entered on Form CT-1040, Line 6.
How to Calculate the CreditYou must first complete your income tax return(s) for the qualifying jurisdiction(s). Then complete the Schedule 2 - Worksheet on Page 30 to determine the amount to enter on Schedule 2, Line 53.The allowed credit must be separately computed for each qualifying jurisdiction. Use separate columns for each qualifying jurisdiction for which you are claiming a credit.
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Attach a copy of all income tax returns filed with qualifying jurisdictions to your Connecticut income tax return or the credit will be disallowed.Taxpayers filing Form CT-1040 electronically should retain copies of all income tax returns filed with qualifying jurisdictions for three years from the date of filing. The forms must be provided to DRS upon request.Schedule 2 provides two columns, A and B, to compute the credit for two jurisdictions. If you need more than two columns, create a worksheet identical to Schedule 2 and attach it to the back of your Form CT-1040.If you are claiming credit for income taxes paid to another state and to one of its political subdivisions, follow these rules to determine your credit.A. If the same amount of income is taxed by both the city
and state (see example for Line 56 on Page 31): 1. Use only one column on Form CT-1040, Schedule 2,
to calculate your credit;2. Enter the same income taxed by both city and state in
that column on Schedule 2; and3. Combine the amounts of tax paid to the city and the
state and enter the total on Line 57 of that column.B. If the amounts of income taxed by both the city and state
are not the same: 1. Use two columns on Form CT-1040, Schedule 2;2. Include only the same income taxed by both
jurisdictions in the first column; and3. Include the excess income taxed by only one of the
jurisdictions in the next column.
Schedule 2 - Worksheet InstructionsComplete the Schedule 2 Worksheet to determine the portion of your Connecticut adjusted gross income derived from a qualifying jurisdiction. For each line in Column II, enter the items of income from Column I that meet all of the following conditions listed below.• The income is derived from or connected with sources
within a qualifying jurisdiction;• The income is reported on an income tax return filed with
that qualifying jurisdiction and subject to income tax in the jurisdiction; and
• You have paid income tax on the income to that qualifying jurisdiction.
If you paid income tax to more than one qualifying jurisdiction, you must complete a separate worksheet for each jurisdiction. Keep the worksheet with your 2017 tax records. Do not attach it to your tax return.
The federal income tax return line references are to the federal Form 1040. If you file a federal Form 1040A or federal Form 1040EZ, use the appropriate lines from those forms.
Column I Enter on Lines 1 through 15 of the worksheet the amounts entered on Lines 7 through 21, respectively, of your federal income tax return.Enter on Line 17 of the worksheet the amount entered on Line 36 of your federal income tax return.Enter on Line 19 of the worksheet the net amount of your Connecticut modifications to federal adjusted gross income. Subtract Form CT-1040, Schedule 1, Line 50, from Line 38 to arrive at this amount.
Column IIFor each line, enter that portion of the amount entered on the same line of Column I you reported on an income tax return filed with (and on which income tax was paid to) the qualifying jurisdiction. On Line 17, enter only the portion of the total federal adjustments to income directly related to income sourced in the qualifying jurisdiction. On Line 19, enter only the portion of Connecticut modifications directly related to income sourced in the qualifying jurisdiction. The fact that the qualifying jurisdiction may take into account your entire adjusted gross income (to compute the rate at which your income sourced in that jurisdiction will be taxed) does not mean you paid income tax to that jurisdiction on your entire adjusted gross income. Because you are a nonresident of the qualifying jurisdiction, you may be taxed by that jurisdiction only on your income sourced in that jurisdiction.
Example 1: Amy, a Connecticut resident whose filing status is single, earned wages of $150,000 from a company located in the State of New York. Amy works inside and outside of New York and allocated her wage income based upon the days worked in New York. She determined $100,000 to be her New York State allocated wage income and reported and paid this amount on her New York nonresident income tax return. On her federal Form 1040, Line 7, she entered $150,000. When completing the Schedule 2 Worksheet, she enters $150,000 in Column I, Line 1, and $100,000 in Column II, Line 1. Amy also enters $100,000 on Form CT-1040, Schedule 2, Line 53.
Example 2: Luke and Lee file a joint federal Form 1040 and a joint Form CT-1040. Lee’s wages as an employee working in Rhode Island are $20,000 and Luke’s wages as an employee working in Connecticut are $25,000. On their federal Form 1040, Line 7, they enter $45,000. When completing the Schedule 2 Worksheet, Luke and Lee enter $45,000 in Column I, Line 1, and $20,000 in Column II, Line 1. Luke and Lee also enter $20,000 on Form CT-1040, Schedule 2, Line 53.
Example 3: Linda is a sole proprietor of a business conducted at two locations: one in Connecticut and one in Massachusetts. On Linda’s federal Form 1040, Line 12, she entered $100,000. Of the $150,000 of gross income reported on federal Form 1040, Schedule C, $90,000 is derived from the Massachusetts location. Of the $50,000 of expenses reported on Schedule C, $35,000 is derived from the Massachusetts location. When completing the Schedule 2 Worksheet, Linda enters $100,000 in Column I, Line 6, and $55,000 ($90,000 - $35,000) in Column II, Line 6. Linda also enters $55,000 on Form CT-1040, Schedule 2, Line 53.
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Schedule 2 – Line InstructionsLine 51: Modified Connecticut Adjusted Gross Income Add to Connecticut adjusted gross income from Line 5 any net loss derived from or connected with sources in a qualifying jurisdiction(s) where you were subject to income taxation whether or not income tax was actually paid to the jurisdiction(s). The modified amount is entered on Line 51.
Example: Fred’s Connecticut adjusted gross income of $60,000 includes income of $15,000 from business activities conducted in Massachusetts and a net loss of $20,000 from a business conducted in Rhode Island. He must add the $20,000 net loss to the $60,000 and enter the $80,000 on Line 51.
Line 52: Taxing Jurisdiction(s)If you claim credit for income taxes paid to a qualifying jurisdiction, enter the name and the two-letter code of each qualifying jurisdiction for which you are claiming credit. If you are claiming credit for income taxes paid to a political subdivision of another state, enter the name and two-letter code of the state.
Standard Two-Letter CodesAlabama ....................AL Louisiana ........... LA Ohio ................... OHArizona ......................AZ Maine .................ME Oklahoma .......... OKArkansas ................... AR Maryland .......... MD Oregon ................ORCalifornia ................. CA Massachusetts ... MA Pennsylvania ...... PAColorado ................... CO Michigan .............MI Rhode Island ........ RIDelaware ...................DE Minnesota ......... MN South Carolina .... SCDistrict of Columbia DC Mississippi .........MS Tennessee ...........TNGeorgia ..................... GA Missouri ............ MO Utah ....................UTHawaii ........................HI Montana .............MT Vermont ..............VTIdaho ..........................ID Nebraska ............ NE Virginia ............. VAIllinois ........................ IL New Jersey ......... NJ West Virginia ....WVIndiana ........................IN New Mexico ..... NM Wisconsin ........... WIIowa ............................IA New York ..........NY Kansas .......................KS North Carolina ... NC Kentucky .................. KY North Dakota .....ND
Line 53: Non-Connecticut IncomeComplete the Schedule 2 Worksheet on this page to determine the total non-Connecticut income included in your Connecticut adjusted gross income and reported on a qualifying jurisdiction’s income tax return. Enter the amount from Column II, Line 20, of the Worksheet.
Line 54Divide the amount on Line 53 by the amount on Line 51. The result cannot exceed 1.0000. Round to four decimal places.
1. Wages, salaries, tips, etc. 1.
2. Taxable interest 2.
3. Ordinary dividends 3.
4. Taxable refunds, credits, or offsets of state and local income taxes 4.
5. Alimony received 5.
6. Business income or (loss) 6.
7. Capital gain or (loss) 7.
8. Other gains or (losses) 8.
9. Taxable amount of IRA distributions 9.
10. Taxable amount of pensions and annuities 10.
11. Rental real estate, royalties, partnerships, S corporations, trusts, etc. 11.
12. Farm income or (loss) 12.
13. Unemployment compensation 13.
14. Taxable amount of social security benefits 14.
15. Other income (including lump-sum distributions) 15.
16. Add Lines 1 through 15. 16.
17. Total federal adjustments to income 17.
18. Federal adjusted gross income: Subtract Line 17 from Line 16. 18.
19. Connecticut modifications: See instructions. 19.
20. Connecticut adjusted gross income: Add Line 18 and Line 19. Enter the amount from Column II on Form CT-1040, Schedule 2, Line 53. 20.
Complete this worksheet and enter the amount from Line 20, Column II, on Form CT-1040, Schedule 2, Line 53. Complete a separate worksheet for each qualifying jurisdiction if you paid income tax to more than one qualifying jurisdiction.
Column IIAmount Taxable in Qualifying
Jurisdiction
Schedule 2 - WorksheetColumn I
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Line 55: Income Tax LiabilitySubtract Line 11 from Line 6 and enter the result.
Line 56Multiply the percentage arrived at on Line 54 by the amount reported on Line 55.
Example: Jen is a Connecticut resident who worked in City Y, a city in State X, during the taxable year. Jen’s filing status is single and her Connecticut adjusted gross income is $160,000. The amount entered on Jen’s Form CT-1040, Line 55, is $8,850. Both State X and City Y impose an income tax. Her Connecticut adjusted gross income derived from State X is $80,000 as is her Connecticut adjusted gross income derived from City Y. Because the amounts of income taxed by both State X and City Y are the same, Jen uses one column on Form CT-1040, Schedule 2. Jen pays an income tax of $6,000 to State X and an income tax of $360 to City Y. Since Jen’s Form CT-1040, Line 51, is $160,000, her Schedule 2 is completed as follows:
Line 57: Income Tax Paid to a Qualifying JurisdictionEnter the total amount of income tax paid to a qualifying jurisdiction.Income tax paid means the lesser of your income tax liability to the qualifying jurisdiction or the income tax paid to that jurisdiction as reported on a return filed with that jurisdiction, but not penalty or interest. Do not report the amount of tax withheld for that jurisdiction directly from your form W-2 or 1099. You must first complete a return for the qualifying jurisdiction to determine the amount of income tax paid.
Line 58Enter the lesser of the amounts reported on Line 56 or Line 57.Do not enter negative amounts. If zero or less, enter “0”.
Line 59: Total Credit for Income Taxes Paid to Qualifying JurisdictionsAdd the amounts from Line 58, Column A, Line 58, Column B, and Line 58 of any additional worksheets. The amount on Line 59 cannot exceed the amount on Line 56. Enter the total here and on Form CT-1040, Line 7. Taxpayers filing a paper Form CT-1040 must attach a copy of all income tax returns filed with qualifying jurisdictions to your Connecticut income tax return or the credit will be disallowed.
Taxpayers filing Form CT-1040 electronically should retain copies of all income tax returns filed with qualifying jurisdictions for three years from the date of filing. The forms must be provided to DRS upon request.
Schedule 3 – Property Tax CreditTo qualify for the property tax credit, you, or your spouse if married filing jointly, must be 65 years of age or older by the end of the taxable year, or you must have claimed at least one dependent on your federal income tax return. Connecticut residents must complete Schedule 3 to determine the amount of credit (if any) that may be taken against a Connecticut income tax liability. The credit is for property taxes paid during 2017 to a Connecticut political subdivision on a primary residence, privately owned or leased motor vehicle, or both. You must attach Schedule 3 to Form CT-1040 or your credit will be disallowed. If you entered zero on Form CT-1040, Line 10, do not complete this schedule. See Informational Publication 2017(23), Q&A: Income Tax Credit for Property Taxes Paid to a Connecticut Political Subdivision.
Which Property Tax Bills QualifyYou may take credit against your 2017 Connecticut income tax liability for qualifying property tax payments you made on your primary residence, privately owned or leased motor vehicle, or both, to a Connecticut political subdivision. Generally, property tax bills due and paid during 2017 qualify for this credit. This includes any installment payments you made during 2017 that were due in 2017 and any installments you prepaid during 2017 due in 2018. Supplemental property tax bills that were due during 2017 or 2018 also qualify if paid during 2017. However, the late payment of any property tax bills or the payment of any interest, fees, or charges related to the property tax bill do not qualify for the credit. Taxpayers who file a joint Connecticut income tax return may include property tax bills for which each spouse is individually or jointly liable.You may take credit for a leased motor vehicle if you had a written lease agreement for a term of more than one year, and the property tax became due and was paid during 2017 (either by the leasing company or by you). Refer to your January 2018 billing statement from the leasing company to determine the amount of property taxes that may be eligible for the credit. Your statement will either indicate the amount of property taxes paid on your leased motor vehicle or provide you with a toll-free number you may call to obtain the necessary information. If you do not receive a billing statement in January 2018, contact your leasing company for the appropriate property tax information.
Example 1: Lisa received a property tax bill for a motor vehicle listed on her town’s October 1, 2015, grand list. The bill was payable in two installments, July 1, 2016, and January 1, 2017. If Lisa paid the January 1, 2017, installment on January 1, 2017, she is eligible to claim it on her 2017 income tax return. If she prepaid it during 2016, she is not eligible to take credit for it on her 2017 return, but she may have been eligible to take credit for it on her 2016 return.
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Example 2: Mary received a property tax bill for a motor vehicle listed on her town’s October 1, 2016, grand list. The bill was payable in two installments, July 1, 2017, and January 1, 2018. Mary is eligible to take credit for both installments on her 2017 income tax return if she paid both installments during 2017. If Mary waited until January 1, 2018, to pay her second installment, she is not eligible to take credit on her 2017 return for this installment, but she may be eligible to take credit for it on her 2018 return.
Maximum Credit AllowedThe maximum credit allowed (on your primary residence, motor vehicle, or both) is $200 per return regardless of filing status.This maximum property tax credit cannot exceed the amount of qualifying property taxes paid or the amount of tax entered on Form CT-1040, Line 10, and is phased out depending upon your Connecticut adjusted gross income. To be allowed this
credit, you must complete Schedule 3 in its entirety and attach it to your return.
Motor Vehicle Credit RestrictionsThe number of motor vehicles eligible for this credit depends on your filing status as shown on the front of your Connecticut income tax return. Any individual whose filing status is single, filing separately, or head of household is limited to the property tax paid on one motor vehicle even if the individual sells a motor vehicle and purchases a replacement motor vehicle during the taxable year and only owns one motor vehicle at any time during the taxable year. Individuals whose filing status is filing jointly or qualifying widow(er) with dependent child are limited to the property taxes paid on two motor vehicles.You may also use the online Property Tax Credit Calculator found on the DRS website at www.ct.gov/DRS and select Individual. If you choose to use the online calculator, you
To qualify for the property tax credit, you, or your spouse if married filing jointly, must be 65 years of age or older by the end of the taxable year, OR you must have claimed at least one dependent on your federal income tax return.Enter the amount from Form CT-1040, Schedule 3 - Property Tax Credit, Line 65, on Line 68 and Line 11, if your filing status is: Single and your Connecticut AGI is ...................................................................................................$49,500 or less Married Filing jointly or qualifying widow(er) and your Connecticut AGI is ...............................$70,500 or less Married Filing separately and your Connecticut AGI is .................................................................$35,250 or less Head of household and your Connecticut AGI is ..............................................................................$54,500 or lessOtherwise, enter the decimal amount from the Property Tax Credit Table below on Form CT-1040, Schedule 3, Line 66.
Use your filing status on the front of your tax return and your Connecticut AGI - Form CT-1040, Line 5.
Property Tax Credit Table
SingleIf you are single and your Connecticut AGI is:
More Less Than Decimal Than or Equal To Amount $ 0 $49,500 0 $49,500 $59,500 .15 $59,500 $69,500 .30 $69,500 $79,500 .45 $79,500 $89,500 .60 $89,500 $99,500 .75 $99,500 $109,500 .90 $109,500 and up 1.00
Married Filing Jointly or Qualifying Widow(er)If you are married filing jointly, or qualifying widow(er) and your Connecticut AGI is: More Less Than Decimal Than or Equal To Amount $ 0 $70,500 0 $70,500 $80,500 .15 $80,500 $90,500 .30 $90,500 $100,500 .45 $100,500 $110,500 .60 $110,500 $120,500 .75 $120,500 $130,500 .90 $130,500 and up 1.00
Head of HouseholdIf you are head of household and your Connecticut AGI is:
More Less Than Decimal Than or Equal To Amount $ 0 $54,500 0 $54,500 $64,500 .15 $64,500 $74,500 .30 $74,500 $84,500 .45 $84,500 $94,500 .60 $94,500 $104,500 .75 $104,500 $114,500 .90 $114,500 and up 1.00
Married Filing Separately If you are married filing separately and your Connecticut AGI is: More Less Than Decimal Than or Equal To Amount $ 0 $35,250 0 $35,250 $40,250 .15 $40,250 $45,250 .30 $45,250 $50,250 .45 $50,250 $55,250 .60 $55,250 $60,250 .75 $60,250 $65,250 .90 $65,250 and up 1.00
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must complete lines 60 through 63 of Schedule 3, Property Tax Credit found on the CT-1040, Page 4, or your credit will be denied.
Schedule 3 – Line InstructionsName of Connecticut Tax Town or DistrictEnter the Connecticut town or taxing district to which the qualifying property tax was paid.
Description of PropertyEnter the description of the property. If a primary residence, enter the street address. If a motor vehicle, enter the year, make, and model.
Date(s) PaidEnter the date(s) you paid qualifying property tax.
Line 60: Primary ResidenceEnter the total amount of property tax paid on your primary residence.
Line 61: Auto 1Enter the total amount of property tax paid on your motor vehicle.
Line 62: Filing Jointly or Qualifying Widow(er)
Only - Auto 2Enter the total amount of property tax paid on your second motor vehicle.
Line 63Add Lines 60, 61, and 62 and enter the total.
Line 64The maximum property tax credit allowed is $200.
Line 65Enter the lesser of Line 63 or Line 64.
Line 66Enter “0” on Line 66 and enter amount from Line 65 on Line 68 if your:
Single $ 49,500 or lessMarried filing jointly or qualifying widow(er) $ 70,500 or lessMarried filing separately $ 35,250 or lessHead of household $ 54,500 or less
Filing status is: Connecticut adjusted gross income is:
Otherwise, go to the Property Tax Credit Table on Page 32 or visit www.ct.gov/DRS to use the Property Tax Calculator.
Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Date of Description of Retailer or Purchase CT Tax Due Balance Due Purchase Services Service Provider Price (Col. 4 X .01) Taxes Paid (Col. 5 minus Col. 6)
Add Column 7 amounts and enter total here and on Form CT-1040, Schedule 4, Line 69a.
Section A - 1% Tax Rate: Computer and Data Processing Services
Connecticut Individual Use Tax Worksheet
Add Column 7 amounts and enter total here and on Form CT-1040, Schedule 4, Line 69c.
Section C - 7.75% Tax Rate Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Date of Description of Retailer or Purchase CT Tax Due Balance Due Purchase Goods or Services Service Provider Price Col. 4 X .0775 Taxes Paid (Col. 5 minus Col. 6)
Add Column 7 amounts and enter total here and on Form CT-1040, Schedule 4, Line 69b.
Section B - 6.35% Tax Rate Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Date of Description of Retailer or Purchase CT Tax Due Balance Due Purchase Goods or Services Service Provider Price (Col. 4 X .0635) Taxes Paid (Col. 5 minus Col. 6)
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Enter the decimal amount from the Property Tax Credit Table on Form CT-1040, Line 66.
Line 67Multiply Line 65 by Line 66.
Line 68Subtract Line 67 from Line 65. Enter here and on the front of Form CT-1040, Line 11.
Schedule 4 – Individual Use Tax In general, goods or services purchased out-of-state that would be subject to the Connecticut sales tax if those goods or services were purchased from a Connecticut seller are subject to the Connecticut use tax if the out-of-state seller did not charge and collect sales tax on the sale. Generally, this includes purchases of goods by mail order, telephone, or online when the goods are shipped or delivered to Connecticut and when the purchaser brings goods back into Connecticut. Use tax is due when taxable purchases are made but Connecticut sales tax is not paid. Any individual or business purchasing taxable goods or services for use in Connecticut without paying Connecticut sales tax must pay use tax. The general use tax rate is 6.35%. However, the following items are subject to a 7.75% use tax rate:• Most motor vehicles exceeding $50,000;• Each piece of jewelry exceeding $5,000;• Each piece of clothing or pair of footwear exceeding
$1,000; and• A handbag, luggage, umbrella, wallet, or watch exceeding
$1,000.Computer and data processing services are subject to a 1% use tax rate. Use the Connecticut Individual Use Tax Worksheet, on Page 33, to calculate your use tax liability. Keep the worksheet for your records. You must provide the worksheet to DRS upon request. See Informational Publication 2016(19), Q&A on the Connecticut Individual Use Tax.Report only those purchases subject to use tax you have not previously reported on Form OP-186, Connecticut Individual Use Tax Return.The Sample Use Tax Table on Page 6 illustrates the use tax due only for various levels of purchases subject to the 6.35% and 7.75% use tax rates.
Line 69Complete the Connecticut Individual Use Tax Worksheet on Page 33. Enter the totals from Column 7 of each section on Lines 69a, 69b, and 69c. Add the amounts on Lines 69a, 69b, and 69c, and enter the total on Line 69. Also enter on Form CT-1040, Line 15.If no Connecticut use tax is due, you must enter “0” on Form CT-1040, Line 15. If you do not make an entry on Line 15,
you will not have filed a use tax return. Failure to file a use tax return and to remit use tax due will subject you to a 10% penalty of the total use tax due plus a 1% interest per month or a fraction of a month. You also may be subject to a penalty of up to $5,000, imprisonment for up to 5 years, or both, for willfully submitting a false return.
Connecticut Individual Use Tax WorksheetSection InstructionsComplete the following sections for purchases subject to each tax rate:• Section A for purchases of computer and data processing
services subject to the 1% tax rate.• Section B for purchases subject to the 6.35% tax rate.• Section C for purchases subject to the 7.75% tax rate.
Column InstructionsColumn 1Enter the month and day of the purchase.
Column 2Enter a brief description of the taxable item or service purchased (jewelry, computer, etc.).
Column 3Enter the name of the retailer the item or service was purchased from.
Column 4Enter the purchase price.List separately any individual item with a purchase price of $300 or more. Although you do not need to list separately any individual item with a purchase price of less than $300, the items are subject to tax and the total of the purchase price of these items should be reported.
Column 5Multiply the purchase price in Column 4 by the applicable tax rate and enter the result.
Column 6If you paid sales tax to another state, the District of Columbia, or a U.S. territory, enter the amount paid.
Column 7Subtract the amount entered in Column 6 from the amount entered in Column 5 and enter the difference in Column 7. Add Column 7 amounts and enter total. Do not enter negative amounts. If zero or less, enter “0.”Enter the total tax for each Section on Schedule 4, Lines 69a through 69c.
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Who qualifies?To qualify for the Connecticut earned income tax credit (CT EITC) you must:1. Have claimed and been allowed the 2017 federal earned
income credit (EIC); and2. Be a full-year resident of the State of Connecticut.Part-year residents and nonresidents do not qualify for the CT EITC and must file Form CT-1040NR/PY.
How to Claim the Connecticut Earned Income Tax CreditComplete Schedule CT-EITC, Connecticut Earned Income Tax Credit, using the information from your federal return, worksheets, and, if applicable, federal EIC line instructions. Attach Schedule CT-EITC to the back of Form CT-1040.
Protect YourselfDRS wants to make it easy for qualified residents to receive their CT EITC, but also reminds taxpayers to take steps to prevent identity theft. Taxpayers need to protect Social Security Numbers and other taxpayer identity information to prevent others from improperly claiming the credit.Do not let others prepare your Schedule CT-EITC with false information to get more money back for themselves. Avoid predatory tax preparers who charge high fees or claim they can get you a larger tax refund for a percentage of the refund. These activities are crimes and should be reported to DRS, at 855-842-1441.
Eligibility ReviewsDRS reviews CT EITC requests to determine if taxpayers qualify for the credit. Approval of the federal earned income credit does not guarantee eligibility for the CT EITC. DRS may request additional information to determine if a credit claim is valid. You must keep accurate records to support all items reported on Schedule CT-EITC.
Schedule CT-EITC - Line instructionsLine 1You must have claimed the 2017 federal earned income credit to claim the CT EITC.
Line 2You cannot claim the CT EITC if your investment income is more than $3,450. Investment income is the total amount of:• Taxable interest (federal Form 1040 or 1040A, Line 8a);• Tax-exempt interest (federal Form 1040 or 1040A,
Line 8b);• Ordinary dividends income (federal Form 1040 or 1040A,
Line 9a); and• Capital gain net income from federal Form 1040A,
Line 10, or Form 1040, Line 13 (if more than zero).
For additional information on what qualifies as investment income, see federal Publication 596, Earned Income Credit.Line 3File Schedule CT-EITC with Form CT-1040. If Form CT-1040 was already filed, you must file a 2017 Form CT-1040X to claim the credit.Schedule CT-EITC cannot be filed by itself. Schedule CT-EITC must be attached to a completed Form CT-1040 or Form CT-1040X.
Line 4If claiming qualifying children on federal Schedule EIC, mark an X in the Yes box and then complete Line 5. Otherwise, mark an X in the No box and go to Line 6.
Line 5If claiming qualifying children on federal Schedule EIC, list the same children (up to three) in the spaces provided. If claiming more than three qualifying children on federal Schedule EIC, enter the required information for three qualifying children in the spaces provided on the schedule and attach a statement with the required identifying information for each additional child. Include taxpayer name and social security number (SSN) on the attachment.To be eligible to claim the CT EITC, you (and your spouse if filing a joint return) must have a valid SSN issued by the Social Security Administration (SSA) by the due date of your 2017 return (including extensions). Any qualifying child listed on Schedule CT-EITC must have a valid SSN by the due date of your 2017 return (including extensions).If a SSN for you or your spouse is missing from your return because either you or your spouse did not have a valid SSN by the due date or extended due date of your 2017 return, and you later get a valid SSN, you cannot file an amended return to claim the CT EITC.If a social security number has been applied for by filing federal Form SS-5 with the Social Security Administration, but has not been received by the return due date you may file Form CT-1040 EXT, to request an extension of time to file. Form CT-1040 EXT does not extend the time to pay your income tax. You must pay the amount of tax that you expect to owe on or before the original due date of the return (see Form CT-1040 EXT).Mark an X in the box confirming each child who was identified on federal Schedule EIC, box 4a, as a full-time student.Mark an X in the box confirming each child who was identified on federal Schedule EIC, box 4b as disabled.
Schedule CT-EITC - Connecticut Earned Income Tax Credit
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Line 6If you did not claim Connecticut withholding on Form CT-1040, Line 18, and Wages, tips, and other compensation was reported on forms W-2 or 1099, mark an X in the Yes box and enter the following information (from up to three jobs) on Lines 6a, 6b, and 6c. Otherwise, mark an X in the No box and go to Line 7.
Column AEnter the employer’s federal identification number (EIN) from form W-2 or the payer’s federal identification number from form 1099.
Column BEnter the employer’s state identification number from form W-2 or form 1099.
Column CEnter your wages, tips, and other compensation from form W-2 or form 1099.
Line 7You are self-employed if you:• Carry on a trade or business as a sole proprietor;• Are an independent contractor;• Are a member of a partnership;• Are a member of a limited liability company; or• Are in business for yourself in any other way.Self-employment can include work in addition to your regular, full-time job. This could include part-time work you do in or outside your home.If you were self-employed then you had business income or loss that you reported on your federal Form 1040. If you claimed income or loss from one or more businesses, mark an X in the Yes box and enter the following information (for up to three primary business activities) on Lines 7a, 7b, and 7c. Otherwise, mark an X in the No box and go to Line 8.See Informational Publication 2015(20), Recordkeeping Suggestions for Self-Employed Persons, or visit the DRS CT EITC website at www.ct.gov/drs/eitc.
Column AEnter your federal employer identification number (EIN) for your business. If any primary business activity does not have an EIN, enter your SSN.
Column BEnter the Connecticut tax registration number for your business.
Column CEnter the amount of business income or loss. Use a minus sign to show a loss or a negative amount.
Line 8Enter the federal EIC claimed for tax year 2017 from federal Form 1040, Line 66a; Form 1040A, Line 42a; or Form 1040EZ, Line 8a.
Line 9 For the tax year 2017, the CT EITC is 23% (.23) of the federal EIC.
Line 11If your filing status was married filing jointly on your federal income tax return but you are required to file as married filing separately on your Connecticut Form CT-1040, mark an X in the Yes box and complete Lines 12 through 15. See Taxpayer Information, on Page 18.Otherwise, mark an X in the No box and skip Lines 12 through 15.
Line 16This is your Connecticut Earned Income Tax Credit. If your filing status is married filing separately, enter the amount from Line 15. Otherwise, enter the amount from Line 10. Enter the amount from Line 16 on Form CT-1040, Line 20a.
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Do not file Form CT-1040X for any of the following reasons:• To have an overpayment refunded instead of applied to next year’s estimated tax or to change your contributions to designated
charities. The elections that you made on your original return cannot be changed by filing Form CT-1040X.• To amend your Connecticut income tax return for an earlier year to claim a credit for income tax paid on income included in your
Connecticut adjusted gross income for that year and repaid in a later taxable year. File Form CT-1040CRC, Claim of Right Credit, with your Connecticut income tax return for the later taxable year.
Financial DisabilityIf you are financially disabled, as defined in IRC §6511(h)(2), the time for having an overpayment of Connecticut income tax refunded or credited to you is extended for as long as you are financially disabled. You are considered financially disabled if you are unable to manage your own affairs by reason of a medically determinable physical or mental impairment that has lasted or can be expected to last for a continuous period of not less than 12 months. You are not considered financially disabled during any period that your spouse or any other person is authorized to act on your behalf in financial matters. See Policy Statement 2001(14), Claims for Refund Made by Financially Disabled Individuals.
Amended ReturnsPurpose: Use a 2017 Form CT-1040X to amend a previously-filed 2017 Connecticut income tax return for individuals. Visit the DRS Taxpayer Service Center (TSC) at www.ct.gov/TSC to file Form CT-1040X online.If Form CT-1040X is filed to have an overpayment of Connecticut income tax refunded or credited, it must be filed before the Connecticut statute of limitations expires. Generally, the Connecticut statute of limitations for refunding or crediting any Connecticut income tax overpayment expires three years after the due date of the return, but if a timely request for an extension of time to file a return was filed, the statute of limitations expires three years after the extended due date of the return or three years after the date of filing the return, whichever is earlier. If you were required to file an amended return, but failed to do so, a penalty may be imposed. Interest will also be assessed on any additional Connecticut income tax not paid on or before the due date. See Interest and Penalties on Page 15.You must file Form CT-1040X in the following circumstances:
3. You claimed a credit for income tax paid to a qualifying jurisdiction on your original income tax return and the tax officials or courts of the qualifying jurisdiction made a change or correction to your income tax return and the change or correction results in your Connecticut income tax being overpaid or underpaid (by increasing or decreasing the amount of your allowable credit).
4. You claimed a credit for income tax paid to a qualifying jurisdiction on your original income tax return and you filed a timely amended income tax return with that qualifying jurisdiction and the amendment results in your Connecticut income tax being overpaid or underpaid (by increasing or decreasing the amount of your allowable credit).
5. If none of the above circumstances apply, but you made a mistake or omission on your Connecticut income tax return and the mistake or omission results in your Connecticut income tax being overpaid or underpaid.
2. You filed a timely amended federal income tax return and the amendment results in your Connecticut income tax being overpaid or underpaid.
File Form CT-1040X no later than 90 days after final determination. If you file Form CT-1040X no later than 90 days after the date of the final determination and you claimed credit for income tax paid to a qualifying jurisdiction on your original income tax return, any Connecticut income tax overpayment resulting from the final determination will be refunded or credited to you even if the Connecticut statute of limitations has otherwise expired.
File Form CT-1040X no later than 90 days after final determination. If you file Form CT-1040X no later than 90 days after the date of the final determination on a timely-amended return with a qualifying jurisdiction and you claimed credit for income tax paid to a qualifying jurisdiction on your original income tax return, any Connecticut income tax overpayment resulting from the final determination will be refunded or credited to you even if the Connecticut statute of limitations has otherwise expired.
File Form CT-1040X no later than three years after the due date of your return, or if you filed a timely request for an extension of time to file, three years after the date of filing the return or three years after the extended due date, whichever is earlier.
File Form CT-1040X no later than 90 days after final determination. If you file Form CT-1040X no later than 90 days after the date of the final determination, any Connecticut income tax overpayment resulting from filing the timely amended federal income tax return will be refunded or credited to you even if the Connecticut statute of limitations has otherwise expired.
1. The IRS or federal courts change or correct your federal income tax return and the change or correction results in your Connecticut income tax being overpaid or underpaid.
File Form CT-1040X no later than 90 days after final determination. If you file Form CT-1040X no later than 90 days after the date of the final determination, any Connecticut income tax overpayment resulting from the final determination will be refunded or credited to you even if the Connecticut statute of limitations has otherwise expired.
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2017 CONNECTICUT INCOME TAX TABLESALL EXEMPTIONS AND CREDITS ARE INCLUDED
And you are .... And you are .... And you are ....
* This column is also used by a qualifying widow(er).
If CT AGI is .... ** If CT AGI is .... ** If CT AGI is .... **
$102,000+ Use Tax Calculation Schedule
**Form CT-1040 - Line 5; Form CT-1040NR/PY - Line 7** Form CT-1040 - Line 5 ; Form CT-1040NR/PY - Line 7
If your Connecticut adjusted gross income is more than $102,000, visit www.ct.gov/DRS and select For Individuals to use the Income Tax Calculator, 2017 Connecticut Income Tax Tables posted for income greater than $102,000 but less than $500,000, or Tax Calculation Schedule. If you calculate your tax manually, using the tax calculator on the DRS website will ensure your tax calculation is correct.
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Table A - Personal ExemptionsEnter the exemption amount on the Tax Calculation Schedule, Line 2 and continue to Line 3.Use the filing status shown on the front of your return and your Connecticut AGI (Tax Calculation Schedule, Line 1) to determine your personal exemption.
Tax Calculation Schedule 1. Enter Connecticut adjusted gross income (AGI) from Form CT-1040, Line 5. 1. 00
2. Enter the exemption amount from Table A, Personal Exemptions. If zero, enter “0.” 2. 00
3. Connecticut Taxable Income: Subtract Line 2 from Line 1. If less than zero, enter “0.” 3. 00
4. Enter amount from Table B, Initial Tax Calculation. 4. 00
5. Enter amount from Table C, 3% Tax Rate Phase-Out Add-Back. If zero, enter “0.” 5. 00
6. Enter the amount from Table D, Tax Recapture. If zero, enter “0.” 6. 00
7. Add Lines 4, 5, and 6. 7. 00
8. Enter the decimal amount from Table E, Personal Tax Credits. If zero, enter “0.” 8. . 9. Multiply the amount on Line 7 by the decimal amount on Line 8. 9. 00
10. Connecticut Income Tax: Subtract Line 9 from Line 7. Enter here and on Form CT-1040, Line 6. 10. 00
Connecticut AGI Connecticut AGI Connecticut AGIExemption Exemption Exemption ExemptionMore Than Less Than
or Equal To
More Than Less Thanor
Equal To
More Than More Than Less Thanor
Equal To
Connecticut AGI
Less Thanor
Equal To
Single Married Filing Jointly or Qualified Widow(er)
!Calculate your tax instantly online using the Connecticut 2017 Income Tax Calculator.
Visit the DRS website at www.ct.gov/DRS and select For Individuals.
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Single or Married Filing Separately Examples: Line 3 is $13,000, Line 4 is $450 $13,000 - $10,000 = $3,000 $3,000 X .05 = $150 $300 + $150 = $450
Line 3 is $525,000, Line 4 is $33,298 $525,000 - $500,000 = $25,000 $25,000 x .0699 = $1,748 $31,550 + $1,748 = $33,298
Married Filing Jointly/Qualifying Widow(er)If the amount on Line 3 of the Tax Calculation Schedule is:Less than or equal to: ..................................................... $ 20,000 ...............3.00%More than $20,000, but less than or equal to ................. $100,000 ..............$600 plus 5.0% of the excess over $20,000More than $100,000, but less than or equal to ............... $200,000 ..............$4,600 plus 5.5% of the excess over $100,000More than $200,000, but less than or equal to ............... $400,000 ..............$10,100 plus 6.0% of the excess over $200,000More than $400,000, but less than or equal to ............... $500,000 ..............$22,100 plus 6.5% of the excess over $400,000More than $500,000, but less than or equal to ............... $1,000,000 ...........$28,600 plus 6.9% of the excess over $500,000More than $1,000,000 ..................................................................................$63,100 plus 6.99% of the excess over $1,000,000
t Enter result on Tax Calculation Schedule, Line 4 (on Page 48) and continue to Line 5. u
Line 3 is $22,500, Line 4 is $725 $22,500 - $20,000 = $2,500 $2,500 x .05 = $125 $600 + $125 = $725
Line 3 is $1,100,000, Line 4 is $70,090 $1,100,000 - $1,000,000 = $100,000 $100,000 x .0699 = $6,990 $63,100 + $6,990 = $70,090
Married Filing Jointly/Qualifying Widow(er) Examples:
Line 3 is $20,000, Line 4 is $680 $20,000 - $16,000 = $4,000 $4,000 x .05 = $200 $480 + $200 = $680
Line 3 is $825,000, Line 4 is $52,228 $825,000 - $800,000 = $25,000 $25,000 x .0699 = $1,748 $50,480 + $1,748 = $52,228
Head of Household Examples:
Table B - Initial Tax CalculationEnter the initial tax calculation amount on the Tax Calculation Schedule, Line 4 and continue to Line 5.Complete all lines of the Tax Calculation Schedule on Page 48 to correctly calculate your 2017 Connecticut income tax.Use the filing status shown on the front of your return.
Single or Married Filing SeparatelyIf the amount on Line 3 of the Tax Calculation Schedule is:Less than or equal to: ..................................................... $ 10,000 ...............3.00%More than $10,000, but less than or equal to ................. $ 50,000 ...............$300 plus 5.0% of the excess over $10,000More than $50,000, but less than or equal to ................. $100,000 ..............$2,300 plus 5.5% of the excess over $50,000More than $100,000, but less than or equal to ............... $200,000 ..............$5,050 plus 6.0% of the excess over $100,000More than $200,000, but less than or equal to ............... $250,000 ..............$11,050 plus 6.5% of the excess over $200,000More than $250,000, but less than or equal to ............... $500,000 ..............$14,300 plus 6.9% of the excess over $250,000More than $500,000 .....................................................................................$31,550 plus 6.99% of the excess over $500,000
t Enter result on Tax Calculation Schedule, Line 4 (on Page 48) and continue to Line 5. u
Head of HouseholdIf the amount on Line 3 of the Tax Calculation Schedule is:Less than or equal to: ..................................................... $ 16,000 ...............3.00%More than $16,000, but less than or equal to ................. $ 80,000 ...............$480 plus 5.0% of the excess over $16,000More than $80,000, but less than or equal to ................. $160,000 ..............$3,680 plus 5.5% of the excess over $80,000More than $160,000, but less than or equal to ............... $320,000 ..............$8,080 plus 6.0% of the excess over $160,000More than $320,000, but less than or equal to ............... $400,000 ..............$17,680 plus 6.5% of the excess over $320,000More than $400,000, but less than or equal to ............... $800,000 ..............$22,880 plus 6.9% of the excess over $400,000More than $800,000 .....................................................................................$50,480 plus 6.99% of the excess over $800,000
t Enter result on Tax Calculation Schedule, Line 4 (on Page 48) and continue to Line 5. u
TIP
!Calculate your tax instantly online
using the Connecticut 2017 Income Tax Calculator. Visit the DRS website
at www.ct.gov/DRS and select For Individuals.
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Table C - 3% Tax Rate Phase-Out Add-BackEnter the phase-out amount on the Tax Calculation Schedule, Line 5 and continue to Line 6.Use the filing status shown on the front of your return and your Connecticut AGI (Tax Calculation Schedule, Line 1) to determine your phase-out level and the additional amount of tax you are required to include in your tax calculation.
Connecticut 2017 Income Tax Calculator. Visit the DRS website at www.ct.gov/DRS and select For Individuals.
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Table D - Tax RecaptureEnter the recapture amount on the Tax Calculation Schedule, Line 6 and continue to Line 7.Use the filing status shown on the front of your return and your Connecticut AGI (Tax Calculation Schedule, Line 1) to determine your recapture amount.
Single or Married Filing Separately Married Filing Jointly or Qualified Widow(er)
Connecticut 2017 Income Tax Calculator. Visit the DRS website at www.ct.gov/DRS and select For Individuals.
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TIP
!Calculate your tax instantly online using the
Connecticut 2017 Income Tax Calculator. Visit the DRS website at www.ct.gov/DRS and select For Individuals.Table E - Personal Tax Credits
Enter the decimal amount on the Tax Calculation Schedule, Line 8 and continue to Line 9.Use the filing status shown on the front of your return and your Connecticut AGI (Tax Calculation Schedule, Line 1) to determine your personal credit decimal amount.
Visit www.ct.gov/TSC to learn more about free filing options.
Most Connecticut taxpayers can electronically file through the DRS electronic Taxpayer Service Center (TSC-IND). The TSC-IND allows you to:
• File your Connecticut resident income tax return;
• File your Connecticut Earned Income Tax Credit (CT EITC);
• File Schedule CT-CHET;
• File a Connecticut extension of time to file request; and
• Make online payments of estimated tax or income tax bills.
In addition, the TSC-IND has expanded options including the ability to:
• File Connecticut nonresident and part-year resident returns;
• Check the status of your income tax refund;
• View account period details;
• View returns filed in the TSC;
• View/cancel scheduled payments made in the TSC; and
• View processed payments.
TSC Website
Statewide ServicesFederal Tax Information
Department of Revenue ServicesState of Connecticut450 Columbus Blvd Ste 1Hartford CT 06103-1837
Phon
eE-
Mai
l Send routine tax questions to [email protected] (do not send account-related inquiries). For account-related questions, including bill and refund inquiries, use the Secure Mailbox feature by logging into the TSC.
Forms and Publications
800-382-9463 (Connecticut calls outside the Greater Hartford calling area only) and select Option 2; or 860-297-4753 (from anywhere).
Email requests, including your name, address (street, city, state, and ZIP code), and the name or number of the tax product to [email protected]
Tax Information
For telephone assistance, call the Department of Revenue Services (DRS) at 800-382-9463 (Connecticut calls outside the Greater Hartford calling area only); or 860-297-5962 (from anywhere).
Inte
rnet Connecticut forms and
publications may be viewed, downloaded, or printed by visiting www.ct.gov/DRS the DRS website.
PhoneE-M
ailW
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InW
alk-InInternet
The TSC includes a comprehensive FAQ database with more than 600 searchable answers. Search by category, tax type, keyword, or phrase.
Choose to file returns, pay amounts due, and direct deposit refunds electronically using the TSC.
It’s fast and free!
For questions about federal taxes, visit www.irs.gov or call the Internal Revenue Service (IRS) at 800-829-1040.To order federal tax forms, call 800-829-3676.
Visit the Official State of Connecticut Website at www.ct.gov for information on statewide services and programs.
860-297-5962
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860-297-4753
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Directions
Free personal taxpayer assistance and forms are available by visiting our offices. Walk-in assistance at all DRS locations is available Monday through Friday, 8:30 a.m. to 4:30 p.m. (arrive by 4:00 p.m.). Directions to DRS offices are available using the DRS phone menu or by visiting the DRS website. If you require special accommodations, please advise the DRS representative. All calls are answered at our main office in Hartford, not at the field offices.
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